Price of Roses (per douce) 15 10 quantity of Roses Adores 9. Refer to the above figure. What could have caused the movement from point B to point C? a. inflation b. a change in income c. a change in the price of d. a change in the cost of producing roses roses 10. What does the deadweight loss of taxation measure? a. the loss in benefit to buyers and sellers in a market due to the tax b. the loss in revenue to the government when buyers choose to buy less of the product c. the loss of efficiency in a market as a result of government intervention d. the lost revenue to businesses because of higher prices to consumers from the tax Price Quantity 11. Refer to the above figure. Which area represents the increase in producer surplus when the price rises from P1 to P2 due to new producers entering the market? a. ACF b. BC E C. ABE d. DEF D 12. When a tax is levied on the sellers of a good, what happens to the supply curve? a. shifts left (up) by more than the tax b. shifts right (down) by more than the tax c. shifts left (up) by an amount equal to the tax d. shifts right (down) by an amount equal to the tax 13. Nathan buys a new sound system for $500. He receives consumer surplus of $400 from the purchase. At what amount does Nathan value his sound system? a. $100 b. $400 c. $500 d. $900