Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents

question 388

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents a tax in the market.

-Refer to Figure 8-7.As a result of the tax,consumer surplus decreases by

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

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Definitions:

Long-term Personal Consequences

The extended impact of actions or decisions on an individual's personal life, often affecting future opportunities, relationships, or well-being.

Justice View

A perspective or belief regarding what is fair, equitable, and right in matters of behavior and decision-making.

Ethical Behaviour

Behaving in a manner that aligns with the moral standards and values commonly accepted by society and individuals.

Impartiality and Fairness

The principle of treating all individuals and parties without bias or discrimination, ensuring equitable treatment and opportunities.