This Graph Depicts a Tax Being Imposed,causing Demand to Shift

question 106

Multiple Choice

This graph depicts a tax being imposed,causing demand to shift from D₁ to D₂.According to the graph shown,the tax caused:

• A) positive government revenue and decreased consumption.
• B) zero government revenue and decreased consumption.
• C) a transfer of revenue to surplus and increased consumption.
• D) positive government revenue and increased consumption.

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Definitions:

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