Table 5.2 -Refer to Table 5.2.The Table Above Lists the Highest Prices

question 91

Multiple Choice

Table 5.2
-Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one ticket falls from $25 to $10,

• A)only three tickets will be sold.
• B)consumer surplus decreases from $24 to $12.
• C)consumer surplus increases from $0 to $31.
• D)everyone will buy a ticket.

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total income earned, representing the percentage of income paid in taxes.

Taxable Income

The portion of an individual's or corporation's income that is subject to taxes according to federal, state, or local law.

Lump-Sum Tax

A tax that is a fixed amount, regardless of the tax base's changes in size or value.

Benefits Principle

The concept that those who benefit from government services should pay taxes in proportion to the amount of benefits they receive.