For good B,the supply curve is the typical upward-sloping straight line,and the demand curve is the typical downward-sloping straight line.When good B is taxed,the area on the relevant supply-and-demand graph that represents
A) government's tax revenue is a rectangle.
B) the deadweight loss of the tax is a triangle.
C) the loss of consumer surplus caused by the tax is neither a rectangle nor a triangle.
D) All of the above are correct.
Correct Answer:
Verified
Q42: Taxes cause deadweight losses because they
A)lead to
Q43: The loss in total surplus resulting from
Q54: Relative to a situation in which gasoline
Q55: Total surplus with a tax is equal
Q58: Which of the following quantities decrease in
Q60: Taxes cause deadweight losses because taxes
A)reduce the
Q73: In the market for widgets,the supply curve
Q73: In the market for widgets,the supply curve
Q119: In the market for widgets,the supply curve
Q124: Figure 8-1 ![]()
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents