Table 4-5 -Refer to Table 4-5. the Equations Above Describe the Demand

question 111

Multiple Choice

Table 4-5

-Refer to Table 4-5. The equations above describe the demand and supply for Aunt Maud's Premium Hand Lotion. The equilibrium price and quantity for Aunt Maud's lotion are $20 and 30 thousand units. What is the value of consumer surplus?

• A) $300 thousand
• B) $450 thousand
• C) $900 thousand
• D) $1,500 thousand

---

Definitions:

Regressive Tax

A tax system wherein the tax rate decreases as the taxable amount increases, placing a higher burden on lower-income earners.

Sales Tax

A tax on the value of goods sold.

Wealth Tax

A tax on the wealth of an individual.

Sales Tax

A tax imposed by a government on sales of goods and services, typically calculated as a percentage of the purchase price.