What Happens to the Total Surplus in a Market When

question 188

Multiple Choice

What happens to the total surplus in a market when the government imposes a tax?

• A)Total surplus increases by the amount of the tax.
• B)Total surplus increases but by less than the amount of the tax.
• C)Total surplus decreases.
• D)Total surplus is unaffected by the tax.

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Definitions:

Brain Damage

Injury to the brain that impairs its functions, which can be caused by trauma, stroke, disease, or other conditions, leading to temporary or permanent cognitive, physical, or emotional impairment.

Speaking

The act of conveying thoughts, feelings, or information verbally in a structured and continuous manner.

Axon

A thin, elongated extension of a neuron, or nerve cell, that usually transmits electrical signals from the cell body of the neuron.

Neurons

Cells in the nervous system specialized in transmitting information by means of electrical and chemical signals.