Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents

question 89

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-7.Which of the following statements is correct?

• A)Total surplus before the tax is imposed is $500.
• B)After the tax is imposed,consumer surplus is 45 percent of its pre-tax value.
• C)After the tax is imposed,producer surplus is 45 percent of its pre-tax value.
• D)All of the above are correct.

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Definitions:

Subjective Norms

An individual’s perception of others’ beliefs about whether a behavior is appropriate and their motivation to comply with those expectations.

Balance Theory

A psychological theory suggesting that people prefer harmony and consistency in their relationships, values, and beliefs, and will change or eliminate attitudes or relationships that are discordant.

Attitude-Behavior Relationship

The link between an individual's beliefs, feelings, and predispositions towards objects or concepts and their consequent actions or behaviors.

Online Reasoning Skills

The ability to critically evaluate information, identify credible sources, and make informed decisions in the digital environment.