Figure 8-6 -Refer to Figure 8-6.As a Result of the Tax

question 142

Multiple Choice

Figure 8-6

-Refer to Figure 8-6.As a result of the tax,

• A)consumer surplus decreases by $65; producer surplus decreases by $85; tax revenue of $120 is generated; and the deadweight loss of the tax is $30.
• B)consumer surplus decreases by $75; producer surplus decreases by $75; tax revenue of $120 is generated; and the deadweight loss of the tax is $30.
• C)consumer surplus decreases by $80; producer surplus decreases by $80; tax revenue of $120 is generated; and the deadweight loss of the tax is $40.
• D)consumer surplus decreases by $120; producer surplus decreases by $120; tax revenue of $200 is generated; and the deadweight loss of the tax is $40.

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Definitions:

Tides

The periodic rise and fall of sea levels caused by the gravitational attraction of the moon and the sun acting upon the earth.

Magnetic Pull

The force exerted by a magnetic field on magnetic objects, influencing their direction and alignment according to the field's orientation.

Mt. Rushmore

A monumental granite sculpture in South Dakota, featuring the faces of four U.S. presidents.

Granite

A very hard, granular, crystalline, intrusive igneous rock consisting mainly of quartz, mica, and feldspar; commonly used in buildings for its strength and durability.