The Graph Shown Demonstrates a Tax on Sellers

question 82

Multiple Choice

The graph shown demonstrates a tax on sellers. Which of the following can be said about the effect of this tax?

• A)The tax increases producer surplus.
• B)Consumers prefer this tax over a tax levied on buyers.
• C)The deadweight loss would be larger if this tax had been imposed on buyers.
• D)The tax decreases consumer surplus.

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Definitions:

Private Militia Group

An armed group that is not part of the official military or police force of a country and often operates with a degree of autonomy to pursue specific objectives.

Special Counsel

An independent investigator appointed to investigate, and possibly prosecute, specific legal issues within or connected to the federal government when there is a potential conflict of interest.

Kenneth Starr

A lawyer and judge known for his investigation of figures during the Clinton administration, leading to the impeachment of President Bill Clinton.