Figure 16.1
-Refer to Figure 16.1.The excess burden of the tax is represented by the area

Question

Figure 16.1 
-Refer to Figure 16.1.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 reduction in consumer and producer surplus that exceeds the revenue collected by the government. In this diagram, the deadweight loss is represented by the combined areas of E and H, which indicates the loss of economic efficiency due to the tax. Therefore, the correct choice is C.

Figure 16.1 -Refer to Figure 16.1.The Excess Burden of the Tax Is