Figure 9-16

question 2

Multiple Choice

Figure 9-16.The figure below illustrates a tariff.On the graph,Q represents quantity and P represents price.
-Refer to Figure 9-16.The tariff

• A)decreases producer surplus by the area C,decreases consumer surplus by the area C + D + E,and decreases total surplus by the area D + F.
• B)increases producer surplus by the area C,decreases consumer surplus by the area C + D + E + F,and decreases total surplus by the area D + F.
• C)creates government revenue represented by the area B + E and decreases total surplus by the area D + E + F.
• D)increases producer surplus by the area C + G and creates government revenue represented by the area D + E + F.

---

Definitions:

Magnitude

The size, extent, or importance of something, often quantitative in nature.

Perfect Positive Relationship

A correlation in which one variable increases exactly as the other one increases, represented by a correlation coefficient of +1.

Correlation Coefficient

A numerical measure that quantifies the strength and direction of a relationship between two variables.

Variables

Elements or characteristics that can vary within or across subjects.