Figure 8-6 the Vertical Distance Between Points a and B Represents a Represents

question 211

Multiple Choice

Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.What happens to consumer surplus when the tax is imposed in this market?

• A)Consumer surplus falls by $3,600.
• B)Consumer surplus falls by $2,700.
• C)Consumer surplus falls by $1,800.
• D)Consumer surplus falls by $900.

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Definitions:

Owner Withdraw

Transactions where the owners withdraw cash or other assets from the business for personal use.

Capital

Financial assets or the financial value of assets, such as cash, that can be used to fund business operations or investments.

Unit Of Measurement

A definite magnitude of a quantity, defined and adopted by convention or by law, used as a standard for measurement of the same kind of quantity.

Economic Data

Information concerning the economy of a region or country, including information about production, consumption, employment, inflation, and GDP.