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Figure 4-8 Figure 4-8 Shows the Market for Beer. the Government Plans

Question 161

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Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a per-unit tax in this market. -Refer to Figure 4-8.As a result of the tax, is there a loss in consumer surplus?

Figure 4-8
Figure 4-8 Figure 4-8 shows the market for beer. The government plans to impose a per-unit tax in this market. -Refer to Figure 4-8.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.
Figure 4-8 shows the market for beer. The government plans to impose a per-unit tax in this market.
-Refer to Figure 4-8.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.

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