Suppose You Can Write Generic Supply and Demand Curves Such $\mathrm { Q } _ { \mathrm { S } } = \mathrm { A } + \mathrm { BP }$

question 5

Multiple Choice

Suppose you can write generic supply and demand curves such that $\mathrm { Q } _ { \mathrm { S } } = \mathrm { A } + \mathrm { BP }$ and $Q _ { D } = D + C P$ .In the usual supply-demand configuration,D must be.

• A)positive
• B)negative
• C)0

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Definitions:

Excess Burden

The cost to society created by market inefficiency, particularly through the misallocation of resources or distortions in the market.

Excess Burden

The cost to society created by market inefficiency, often associated with the distortionary effects of taxes and subsidies.

Tax Revenue

The income that is gained by governments through taxation, used to fund public services and government obligations.

Excess Burden

The economic loss that society suffers due to market inefficiencies or taxes beyond the collected tax revenue.