The Supply Curve for Whiskey Is the Typical Upward-Sloping Straight

question 80

Multiple Choice

The supply curve for whiskey is the typical upward-sloping straight line,and the demand curve for whiskey is the typical downward-sloping straight line.When whiskey is taxed,the area on the relevant supply-and-demand graph that represents

• A)government's tax revenue is a rectangle.
• B)the deadweight loss of the tax is a triangle.
• C)the loss of consumer surplus caused by the tax is neither a rectangle nor a triangle.
• D)All of the above are correct.

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Definitions:

Parameter

A quantity that characterizes a statistical population and can be estimated by a function of the sample data.

Undergraduates

Students pursuing a bachelor's degree or an associate degree in colleges or universities.

Drinking Problem

A pattern of alcohol consumption that negatively affects a person's health, relationships, and responsibilities.

Bias

A systematic error or deviation from the truth in results or inferences, possibly leading to unfair outcomes or conclusions.