Figure 8-2 the Vertical Distance Between Points a and B Represents a Represents

question 160

Multiple Choice

Figure 8-2
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-2.The loss of consumer surplus as a result of the tax is

• A)$1.50.
• B)$3.
• C)$4.50.
• D)$6.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Repairs and Maintenance

The expenses a company incurs to keep its assets in working condition, not extending the life of the asset but rather restoring it or maintaining current condition.

Capital Expenditure

Long-term investments or expenditures made by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings.

Net Income

The amount of profit left over after all expenses and taxes have been subtracted from total revenue.