When a product is taxed,
A) part of the initial consumer surplus goes to the government as revenue.
B) part of the initial consumer surplus becomes a deadweight loss.
C) the producer surplus never changes because consumers pay taxes, not producers.
D) Both answers A and B are correct.
E) Both answers B and C are correct.
D
Economics
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Refer to Table 4-12. The equations above describe the demand and supply for Bubba's Fried Jellybeans. The equilibrium price and quantity for Bubba's Fried Jellybeans are $40 and 5 thousand units. What is the value of consumer surplus?
A) $5 thousand B) $12.5 thousand C) $25 thousand D) $37.5 thousand
Economics
Approximately ____ percent of federal government spending in 2007 was for transfer payments and interest payments
a. 5 b. 10 c. 55 d. 30 e. 75
Economics