The Graph Shown Demonstrates a Tax on Buyers

question 36

Multiple Choice

The graph shown demonstrates a tax on buyers. Which of the following can be said about the effect of this tax?

• A) The price paid by buyers is greater than that received by sellers, and the difference is the tax wedge.
• B) The price paid by buyers is less than that received by sellers, and the difference is the total tax revenue.
• C) The price paid by buyers is greater than that received by sellers, and the difference is the total tax revenue.
• D) The price paid by buyers and received by sellers is higher than it was before the tax was imposed.

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Definitions:

Performance Problem

Refers to a gap between actual performance and desired performance in a work environment.

Mission Critical

Referring to any factor, system, or operation that is essential to an organization's ability to meet its core objectives and continue functioning effectively.

Data Collection

The process of gathering and measuring information from a variety of sources to get a complete and accurate picture of an area of interest.

Two-Way Communication

A form of communication in which information or messages are exchanged between two parties, allowing for feedback and interaction.