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Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.When the tax is imposed in this market,producer surplus is
Collateral
Property or assets pledged by a borrower to secure a loan, subject to seizure on default.
Third-Party Beneficiary
A person who is not a party to a contract but who has the right to enforce it because the parties to the contract made the contract with the intent to benefit him.
Implied
Something not explicitly stated but understood to be included or involved through indirect indications or logical inference.
Statute of Frauds
A legal concept that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be enforceable.
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