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:

Brand Loyal

The extent to which a consumer consistently purchases the same brand over time instead of switching to competitors.

Customers

People or companies that buy products or services from a business.

Procter & Gamble

An American multinational consumer goods corporation, specializing in a wide range of personal health/consumer health, and hygiene products.

Store Brand Labels

Products that are manufactured or procured by a retailer and sold under its own brand name, typically at a lower price than national brands.