The Supply Curve for Whiskey Is the Typical Upward-Sloping Straight

question 80

Multiple Choice

The supply curve for whiskey is the typical upward-sloping straight line,and the demand curve for whiskey is the typical downward-sloping straight line.When whiskey is taxed,the area on the relevant supply-and-demand graph that represents

• A)government's tax revenue is a rectangle.
• B)the deadweight loss of the tax is a triangle.
• C)the loss of consumer surplus caused by the tax is neither a rectangle nor a triangle.
• D)All of the above are correct.

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Definitions:

Delinquent Taxes

Taxes that have not been paid by the due date, often subject to penalties and interest charges.

Short-Term Note

A debt instrument or loan with a maturity of less than one year, often used for immediate financing needs.

Cost Basis

The original value or purchase price of an asset or investment for tax purposes, adjusted for stock splits, dividends, and return of capital distributions.

Transportation Costs

Expenses associated with the movement of goods or people from one place to another.