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Figure 8-7 the Vertical Distance Between Points a and B Represents a Represents

Question 65

Multiple Choice

Figure 8-7
The vertical distance between points A and B represents a tax in the market. Figure 8-7 The vertical distance between points A and B represents a tax in the market. -Refer to Figure 8-7.Which of the following statements is correct? A) Total surplus before the tax is imposed is $180. B) After the tax is imposed,consumer surplus is 25 percent of its pre-tax value. C) After the tax is imposed,producer surplus is 36 percent of its pre-tax value. D) All of the above are correct.
-Refer to Figure 8-7.Which of the following statements is correct?


A) Total surplus before the tax is imposed is $180.
B) After the tax is imposed,consumer surplus is 25 percent of its pre-tax value.
C) After the tax is imposed,producer surplus is 36 percent of its pre-tax value.
D) All of the above are correct.

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