If the Demand Curve and the Supply Curve for a Good

question 36

Multiple Choice

If the demand curve and the supply curve for a good are straight lines,then the deadweight loss that results from a tariff is represented on the supply-and-demand graph by

• A)the area of one triangle.
• B)the area of one rectangle.
• C)the combined areas of two different triangles.
• D)the combined areas of two different rectangles.

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Definitions:

Demand

The willingness and ability of consumers to purchase a particular good or service at various prices.

Heart Attack

A medical condition resulting from the blockage of blood flow to the heart muscle.

Normal Good

A good for which demand increases as the income of the buyer increases, implying a positive relationship between income and demand.

iTunes Music

A media player, media library, Internet radio broadcaster, and mobile device management application developed by Apple Inc.