Multiple Choice
A tax in an industry would result in:
A) a decrease in consumer surplus.
B) a decrease in producer surplus
C) a decrease in the gains from trade.
D) all of the above.
Correct Answer:

Verified
Correct Answer:
Verified
Q117: Exhibit 7-12 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="Exhibit 7-12
Q118: Exhibit 7-14 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="Exhibit 7-14
Q119: Exhibit 7-11 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="Exhibit 7-11
Q120: Exhibit 7-12 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="Exhibit 7-12
Q121: Other things equal, for a given tax,
Q123: Exhibit 7-7 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="Exhibit 7-7
Q124: Exhibit 7-13 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB5768/.jpg" alt="Exhibit 7-13
Q125: Consumer surplus equals the quantity supplied minus
Q126: The maximum price a buyer is willing
Q127: Other things being equal, the more elastic