Figure 15.1

-Refer to Figure 15.1.The excess burden of the tax is represented by the area

Name: Figure 15.1 -Refer to Figure 15.1.The excess burden of the tax is represented by the area
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Question

Figure 15.1
 
-Refer to Figure 15.1.The excess burden of the tax is represented by the area

Quizplus · Accepted Answer

The excess burden of the tax is represented by the deadweight loss, which is the loss of consumer and producer surplus due to the tax. In this figure, it is the sum of areas E and H, which represent the lost consumer surplus and lost producer surplus, respectively. Therefore, the correct choice is C - E + H.

Figure 15.1 -Refer to Figure 15.1.The Excess Burden of the Tax Is