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

question 206

Multiple Choice

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

• A) larger than the area that represents consumer surplus in the absence of the tax.
• B) larger than the area that represents government's tax revenue.
• C) a triangle.
• D) All of the above are correct.

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Definitions:

Matters Of Opinion

Issues or topics that are subjective and open to personal interpretation, beliefs, or preferences, rather than being based on fact or necessity.

Prosperity

Denotes a state of flourishing, wealth, and good fortune, where an individual or community enjoys success and economic well-being.

Reference Groups

Groups that individuals use as a standard for evaluating themselves and their own behavior.

Informational Influence

A phenomenon in social psychology where an individual changes their opinion or behavior to align with what they believe is the correct response based on the information or cues provided by others.