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

question 165

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 total surplus in this market when the tax is imposed?

• A)Total surplus increases by $1,500.
• B)Total surplus increases by $3,000.
• C)Total surplus decreases by $1,500.
• D)Total surplus decreases by $,3000.

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Definitions:

System of Equations

A collection of two or more equations with the same set of unknowns.

Method of Substitution

A technique for solving systems of equations by replacing one variable with an equivalent expression in terms of the other variables.

System of Equations

A set of two or more equations with the same variables, which are solved together.

Method of Substitution

A method involving the resolution of equation systems through isolating a variable in one equation and then inserting that solution into another equation.