The Figure Given Below Shows the Demand and Supply Curves

question 6

Multiple Choice

The figure given below shows the demand and supply curves of labor.A per-unit tax imposed on the wage income of the employees shifts the supply curve of labor upward.
-According to Figure 18-2,the proportion of the per-unit tax paid by employees is:

• A)CB/CA.
• B)BA/OB.
• C)AB/CA.
• D)OA/OC.

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Definitions:

Consumer Demand

The desire and willingness of consumers to purchase goods or services at a given price, influencing market dynamics and pricing strategies.

Consumer Surplus

The gap between the total amount consumers are prepared and able to spend for a product or service versus what they genuinely spend.

Maximum Price

The highest price that can legally be charged for a good or service, often set by government regulations to protect consumers from excessively high prices.

Market Failure

A situation in which the allocation of goods and services is not efficient, often leading to a net social welfare loss.