Assume That for Good X the Supply Curve for a Good

question 54

Multiple Choice

Assume that for good X the supply curve for a good is a typical,upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.If the good is taxed,and the tax is doubled,the

• A)base of the triangle that represents the deadweight loss doubles.
• B)height of the triangle that represents the deadweight loss doubles.
• C)deadweight loss of the tax quadruples.
• D)All of the above are correct.

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Definitions:

Financing Activities

These activities generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company’s owners, such as selling or repurchasing shares of common stock and paying dividends.

Common Stock

A type of equity security that represents ownership in a corporation, giving the holder a share of the corporation's profits and assets.

Cash Outflow

Money that is spent or paid out by a business or individual, resulting in a decrease in cash balance.

Financing Activities

Refers to transactions and business events affecting long-term liabilities and equity, including obtaining resources from owners and providing them with a return on their investment.