The difference in price between hardback books and paperbacks is primarily explained by differences in production costs.

The marginal propensity to consume is the ratio of a change in consumption to a change in income

Indicate whether the statement is true or false

Suppose a tax of $0.10 per unit on a good creates a deadweight loss of $100 . If the tax is increased to $0.25 per unit, the deadweight loss from the new tax would be

a. $200. b. $250. c. $475. d. $625.