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Use the Figure Below to Answer the Following Question(s)

Question 266

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Use the figure below to answer the following question(s) .
Figure 4-9 Use the figure below to answer the following question(s) . Figure 4-9 -Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. What does the triangular area abc represent? A) the revenue the government derives from the tax B) the tax paid by consumers C) the tax paid by producers D) the deadweight loss (or excess burden) created by the tax
-Refer to Figure 4-9. The market for gasoline was initially in equilibrium at point b and a $.40 excise tax is illustrated. What does the triangular area abc represent?


A) the revenue the government derives from the tax
B) the tax paid by consumers
C) the tax paid by producers
D) the deadweight loss (or excess burden) created by the tax

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