Use the Following Information to Answer the Following Questions

question 8

Multiple Choice

Use the following information to answer the following questions.
The following graph depicts a market where a tax has been imposed.P_e was the equilibrium price before the tax was imposed,and Q_e was the equilibrium quantity.After the tax,P_C is the price that consumers pay,and P_S is the price that producers receive.Q_T units are sold after the tax is imposed.NOTE: The areas B and C are rectangles that are divided by the supply curve S_T.Include both sections of those rectangles when choosing your answers.

-Which areas represent producer surplus after the tax is imposed?

• A) E + C + G
• B) E + C
• C) E + G
• D) F + G
• E) E

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Definitions:

Customs Laws

Regulations imposed by governments on the import and export of goods, aimed at controlling the flow of goods across borders.

Protectionism

A call for tariffs and favorable treatments to protect domestic firms from foreign competition.

Foreign Competition

The presence of companies from different countries competing in a market, often emphasizing the global nature of business.

European Union

The European Union is a political and economic union of member states that are located primarily in Europe, aiming to promote peace, stability, and economic cooperation among its members.