s i QO SR DWEENUI; 16. Which term best describes the sensitivity of the tax base to changes in the tax rate? a. deadweight loss b. elasticity of the tax base c. equilibrium d. producer surplus 17. What is tax revenue? a. the amount of the tax divided by the amount of the good sold b. the amount of the tax minus the amount of the good sold c. the amount of the tax times the amount of the good sold d. the amount of the tax plus the amount of the good sold 18. Which area represents the tax revenue? a. The area of the rectangle between the supply and demand curves, where the height of this rectangle is the size of the tax, and the width of the rectangle is the quantity of the good sold after the tax is imposed. b. The area of the triangle between the supply and demand curves, where the height of this rectangle is the size of the tax, and the width of the rectangle is the quantity of the good sold after the tax is imposed. c. The area of the rectangle below the supply and above the demand curve, where the height of this rectangle is the size of the tax, and the width of the rectangle is the quantity of the good sold after the tax is imposed. d. The area-of the triangle below the supply and above the demand curve, where the height of this rectangle is the size of the tax, and the width of the rectangle is the quantity of the good sold after the tax is imposed. 19. Which of the following is correct? a. When a tax is levied, the tax revenue is the same as the fall in consumer and producer surplus. b. When a tax is levied, the tax revenue exceeds the fall in consumer and producer surplus. c. When a tax is levied, the tax revenue is the same as the fall in consumer surplus. d. When a tax is levied, the tax revenue is lower than the fall in consumer and producer surplus. Supply Benand 8 Quantity % i ,' ..v 20. In Figure 1 aboye, suppose a tax of T1 is imposed in this market. Which area represents the deadweight loss of tax a. X by cZ d. X Y I i Page 30f 7