The Supply Curve and the Demand Curve for a Good

question 13

Multiple Choice

The supply curve and the demand curve for a good are straight lines.When the good is taxed,the area on the relevant supply-and-demand graph that represents

• A)government's tax revenue is a rectangle.
• B)the deadweight loss of the tax is a triangle.
• C)the loss of consumer surplus caused by the tax is neither a rectangle nor a triangle.
• D)All of the above are correct.

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