Multiple Choice
Figure 4-15
Figure 4-15 shows the market for beer. The government plans to impose a per-unit tax in this market.
-Refer to Figure 4-15. As a result of the tax, is there a loss in consumer surplus?
A) Yes, because consumers pay a price above the economically efficient price.
B) No, because the producer pays the tax.
C) No, because the market reaches a new equilibrium
D) No, because consumers are charged a lower price to cover their tax burden.
Correct Answer:
Verified
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