Figure 8-6 the Vertical Distance Between Points a and B Represents a Represents

question 165

Multiple Choice

Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.What happens to total surplus in this market when the tax is imposed?

• A)Total surplus increases by $1,500.
• B)Total surplus increases by $3,000.
• C)Total surplus decreases by $1,500.
• D)Total surplus decreases by $,3000.

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Definitions:

Royalties

Payments made to a rights holder, such as an author, artist, or patentee, for the use of their original work or invention.

Patents

Legal rights granted to inventors that give them exclusive rights to use, make, and sell their invention for a certain period of time.

Songs

Musical compositions that are sung or played by voices or instruments.

Primarily Rental

Refers to a property whose main use is for renting out to tenants rather than as a primary residence for the owner.