Figure 8-8 Suppose the Government Imposes a $10 Per Unit Tax on Tax

question 109

Multiple Choice

Figure 8-8
Suppose the government imposes a $10 per unit tax on a good.
-Refer to Figure 8-8.The tax causes consumer surplus to decrease by the area

• A)A.
• B)B+C.
• C)A+B+C.
• D)A+B+C+D+F.

---

Definitions:

Mobile Phones

Portable electronic devices used for communication purposes, including voice calls, text messaging, and internet access.

Consumer Prices

Prices paid by consumers for goods and services, which can be influenced by changes in supply and demand.

Profits

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Productivity

The efficiency of production measured by the amount of output per unit of input.