For a Good That Is Taxed, the Area on the Relevant

question 121

Multiple Choice

For a good that is taxed, the area on the relevant supply-and-demand graph that represents government's tax revenue is

• A)smaller than the area that represents the loss of consumer surplus and producer surplus caused by the tax.
• B)bounded by the supply curve, the demand curve, the effective price paid by buyers, and the effective price received by sellers.
• C)a right triangle.
• D)a triangle, but not necessarily a right triangle.

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Definitions:

Aerobic Respiration

A metabolic process that uses oxygen to convert glucose or other organic molecules into energy (ATP), carbon dioxide, and water.

Electrons

Negatively charged subatomic particles orbiting the nucleus of an atom.

Citric Acid Cycle

A key metabolic pathway that takes place in the mitochondria, involving the oxidation of acetyl-CoA to carbon dioxide and ATP production, also known as the Krebs cycle.

Glucose

A basic form of sugar that serves as a crucial energy source for living beings and is a constituent of numerous carbohydrates.