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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Definitions:

Posthypnotic Suggestion

A directive given to a person under hypnosis that they are to carry out after awakening from the hypnotic state.

Mailed Postcards

Physical cards, often decorative or photo-based, sent through postal services to convey messages across distances.

Perception

The cognitive process of interpreting and organizing sensory information to understand the environment.

Hypnotized

The state of having one's attention, awareness, and consciousness altered by hypnosis, making the individual more open to suggestion.