Figure 8-3 the Vertical Distance Between Points a and B Represents a Represents

question 144

Multiple Choice

Figure 8-3
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-3. Which of the following statements is correct?

• A)The loss of producer surplus that is associated with some sellers dropping out of the market as a result of the tax is $60.
• B)The loss of consumer surplus for those buyers of the good who continue to buy it after the tax is imposed is $120.
• C)The loss of consumer surplus caused by this tax exceeds the loss of producer surplus caused by this tax.
• D)This tax produces $320 in tax revenue for the government.

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Definitions:

Discretionary Action

Actions that rely on individual judgment and choice in the execution of a duty or the handling of a situation.

Role Conflict

Occurs when an individual faces incompatible demands or expectations from different roles they are required to perform.

Position Power

The authority or influence a person has due to their role or position within an organization or group.

Formal Authority

The power granted to an individual or group through official or legal means within an organization or society.