-Refer to the Above Figure

question 15

Multiple Choice

-Refer to the above figure. A unit tax has been placed on the good. The producer pays what amount of the tax?

• A) none of the tax
• B) P2 - P0
• C) P2 - P1
• D) P1 - P0

---

Definitions:

Current Yield

The annual return of an investment expressed as a percentage of its current price.

Rate of Return

The gain or loss on an investment over a specified period, proportionally expressed as a percentage of the investment's initial cost.

Capital Gains

The profit realized from the sale of assets or investments when the selling price exceeds the original purchase price.

Market Interest Rates

The prevailing rates at which borrowers can obtain loans and lenders can deposit funds in the financial markets, influenced by supply and demand, inflation, and monetary policy.