The Difference Between the Price Consumers Pay and the Price

question 80

Multiple Choice

The difference between the price consumers pay and the price sellers receive after a tax is imposed is equal to the

• A) loss of social welfare from the tax.
• B) dollar amount of the tax.
• C) deadweight loss from the tax.
• D) revenue from the tax.
• E) lost profit from the tax.

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Definitions:

Poverty Alleviation

Refers to strategies and initiatives aimed at reducing the number of people living in poverty.

Economic Wellbeing

A measurement of how well individuals and societies can fulfill their needs and wants, often associated with income, employment, and quality of life.

National Income

The total value of all goods and services produced by a country over a specific period, typically a year, including income from abroad.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.