The Figure Given Below Shows the Demand and Supply Curves

question 101

Multiple Choice

The figure given below shows the demand and supply curves of automobiles.Figure 13.3
In the figure,
D: Demand curve of automobiles
S: Supply of automobiles prior to the tax
S+t: Supply of automobiles after the tax

-In Figure 13.3, the amount of tax levied by the government is equal to:

• A)0P_t
• B)0P_.
• C)Q_td - Q_tc.
• D)0Q - 0Q_t.
• E)Q_tb - Q_td.

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Definitions:

Accounting Events

Transactions or occurrences that result in changes to the financial statements of a company, requiring recognition or disclosure.

Period-To-Period Consistency

An accounting principle ensuring the application of the same accounting methods and principles from one period to the next to ensure financial comparability.

Debits

Accounting entries that increase assets or expenses or decrease liabilities or equity on a company's balance sheet.

Credits

Accounting entries that increase liabilities or equity or decrease assets, representing the opposite effect of debits in the double-entry bookkeeping system.