Figure 12.1
-Refer to Figure 12.1.The excess burden of the tax is represented by the area -.
A) B + C
B) F + G
C) E + H
D) B + C + F + G

Question

Figure 12.1 
-Refer to Figure 12.1.The excess burden of the tax is represented by the area -.
A) B + C 
B) F + G 
C) E + H 
D) B + C + F + G

Quizplus · Accepted Answer

Excess burden of the tax is the deadweight loss caused by the tax. In the given figure, deadweight loss is represented by the triangles E and H. Therefore, the excess burden of the tax is the sum of E and H, which is option C.

Figure 12.1 -Refer to Figure 12.1.The Excess Burden of the Tax Is