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

question 454

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 for those buyers of the good who continue to buy it after the tax is imposed is

• A) $0.
• B) $1.50.
• C) $3.
• D) $4.50.

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Definitions:

Debit

An accounting entry that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Credit

An accounting entry on the right side of an account ledger, recording increases in liabilities, equity, and revenue, or decreases in assets and expenses.

Recording Process

The act of documenting financial transactions systematically in the books of accounts of a business.

Journal

An elaborate log that captures every financial transaction of an enterprise, initially entered prior to its transfer to the accounts within the general ledger.