(Figure: Impact of Tax on Market Equilibrium) Based on the Graph

question 190

Multiple Choice

(Figure: Impact of Tax on Market Equilibrium) Based on the graph, the deadweight loss created by the tax equals _____, and it is borne primarily by the _____.

• A) $60; buyer
• B) $60; seller
• C) $120; buyer
• D) $120; seller

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Definitions:

Mode

The most common number found in a set of data.

Distribution

In statistics, the way in which values of a variable or frequencies of occurrence are spread out over a range.

Earnings

The amount of money that an individual or business receives in exchange for providing a good or service or through investing capital.

Sorority

A sorority is a social organization at colleges and universities primarily for female students, often characterized by a system of values, sisterhood, and philanthropic activities.