Figure 8-4 the Vertical Distance Between Points a and B Represents a Represents

question 111

Multiple Choice

Figure 8-4
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-4. The price that buyers effectively pay after the tax is imposed is

• A) $12.
• B) between $8 and $12.
• C) between $5 and $8.
• D) $5.

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Definitions:

Marginal Cost

The financial outlay required to produce an additional unit of a good or service.

Gasoline

A transparent, petroleum-derived liquid that is used primarily as a fuel in most spark-ignited internal combustion engines.

Car Wash

A facility for cleaning vehicles, typically involving an automated system with brushes and water jets or a manual cleaning by workers.

Marginal Decisions

Decisions made based on the additional benefit or cost of consuming or producing one more unit of a good or service.