Use the Following to Answer Questions

question 241

Multiple Choice

Use the following to answer questions:
Figure and Table: The Market for Taxi Rides
-(Figure and Table: The Market for Taxi Rides) Look at the figure and table The Market for Taxi Rides. If the government imposes an excise tax of $1 per ride (causing the supply curve to shift upward by that amount) , then the government will collect tax revenues of _____. However, the tax will cause a _____ deadweight loss to society.

• A) $9 million; $0.5 million
• B) $16 million; $1 million
• C) $45 million; $1 million
• D) $50 million; $0.5 million

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Definitions:

Glaciers

Massive, moving bodies of ice that form on land through the accumulation and compaction of snow.

Tide

The periodic rise and fall of sea levels caused by the gravitational interactions between the Earth, Moon, and Sun.

Rapid Erosion

The quick removal of soil and rock from the Earth's surface by natural processes like flowing water or wind.

Cliff

A steep face of rock and soil, often formed by erosional processes along coastlines, riverbanks, or in mountainous regions.