Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents

question 168

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-7.As a result of the tax,consumer surplus decreases by

• A)$130,producer surplus decreases by $170,tax revenue is $240,and deadweight loss is $60.
• B)$150,producer surplus decreases by $150,tax revenue is $240,and deadweight loss is $60.
• C)$160,producer surplus decreases by $160,tax revenue is $240,and deadweight loss is $80.
• D)$240,producer surplus decreases by $240,tax revenue is $400,and deadweight loss is $80.

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Definitions:

Social Motives

The driving forces behind people's engagement in social behavior, including needs for affiliation, achievement, and power.

Social Interactions

The process by which individuals act and react in relation to others, involving exchanges that are foundationally human and essential for the development of societies.

Primary Motives

Fundamental drives that are biologically based, necessary for survival, such as hunger, thirst, and avoidance of pain.

Drive-Reduction Theory

A psychological theory that posits human behavior is motivated by the desire to reduce internal states of tension caused by unmet needs.