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This Graph Depicts a Tax Being Imposed,causing Demand to Shift

Question 20

Multiple Choice

This graph depicts a tax being imposed,causing demand to shift from D<sub>1</sub> to D<sub>2</sub>.The deadweight loss associated with the tax imposed in the graph shown is: A) equal to area CBD. B) equal to area ABC. C) due to the decrease in consumption from Q<sub>1</sub> to Q<sub>2</sub>. D) equal to area P<sub>1</sub>DCP<sub>2</sub>. This graph depicts a tax being imposed,causing demand to shift from D1 to D2.The deadweight loss associated with the tax imposed in the graph shown is:


A) equal to area CBD.
B) equal to area ABC.
C) due to the decrease in consumption from Q1 to Q2.
D) equal to area P1DCP2.

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