Figure 18-1

-Refer to Figure 18-1.Of the tax revenue collected by the government, the portion borne by consumers is represented by the area
A)B + C.
B)F + G.
C)E + H.
D)B + C + F + G.

Question

Figure 18-1
 
-Refer to Figure 18-1.Of the tax revenue collected by the government, the portion borne by consumers is represented by the area
A)B + C. 
B)F + G. 
C)E + H. 
D)B + C + F + G.

Quizplus · Accepted Answer

In the diagram, the triangle B + C represents the portion of the tax revenue borne by consumers. This area represents the increase in price that consumers pay as a result of the tax being levied on the product. Therefore, A is the correct choice as it correctly represents the area that represents the portion of the tax paid by consumers.

Figure 18-1 -Refer to Figure 18-1.Of the Tax Revenue Collected by the Revenue