Figure 8-1
-Refer to Figure 8-1.Suppose the government imposes a tax of P' - P'''.The tax revenue is measured by the area
A)K+L.
B)I+Y.
C)J+K+L+M.
D)I+J+K+L+M+Y.

Name: Figure 8-1 -Refer to Figure 8-1.Suppose the government imposes a tax of P' - P'''.The tax revenue is measured by the area A)K+L. B)I+Y. C)J+K+L+M. D)I+J+K+L+M+Y.
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Question

Figure 8-1 
-Refer to Figure 8-1.Suppose the government imposes a tax of P' - P'''.The tax revenue is measured by the area
A)K+L. 
B)I+Y. 
C)J+K+L+M. 
D)I+J+K+L+M+Y.

Quizplus · Accepted Answer

The tax revenue is the area of the rectangle with height P' - P''' and width Q - Q'''. This is the area K + L.

Figure 8-1 -Refer to Figure 8-1.Suppose the Government Imposes a Tax of a Tax