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

question 95

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents the original tax.
-Refer to Figure 8-7. If the government changed the per-unit tax from $5.00 to $2.50, then the price paid by buyers would be $7.50, the price received by sellers would be $5, and the quantity sold in the market would be 1.5 units. Compared to the original tax rate, this lower tax rate would

• A)increase government revenue and increase the deadweight loss from the tax.
• B)increase government revenue and decrease the deadweight loss from the tax.
• C)decrease government revenue and increase the deadweight loss from the tax.
• D)decrease government revenue and decrease the deadweight loss from the tax.

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Definitions:

Cloisonné Metalwork

A decorative art technique involving the application of enamel, gemstones, glass pieces, or other materials separated by metal strips or wires on a metal surface.

Book of Durrow

An early medieval illuminated manuscript gospel book known for its intricate insular art, blending Christian and Celtic motifs, created in the 7th century.

Late Roman Adornment

The style and fashion of personal decoration and accessories used during the late Roman Empire, characterized by intricate jewelry and luxurious fabrics.

Lindisfarne Gospels

An illuminated manuscript gospel book produced around the year 700 in a monastery at Lindisfarne, celebrated for its high artistic quality and the blending of Anglo-Saxon and Celtic art styles.