With linear demand and supply curves in a market, suppose a tax of $0.20 per unit on a good creates a deadweight loss of $40 . If the tax is increased to $0.50 per unit, the deadweight loss from the new tax will be
a. $200.
b. $250.
c. $475.
d. $625.
b
Economics
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Given expectations of future exchange rates, when foreign returns are greater than domestic returns, investors will ___domestic assets, ___domestic currency, ___ foreign currency, and ___ foreign assets.
a. sell; sell; buy; buy b. sell; buy; sell; buy c. buy; sell; buy; sell d. buy; buy; sell; sell
Economics
If the exchange rate is such that $1 equals 10 Mexican pesos, then the price of a peso is
A) $10. B) $1. C) $0.20. D) $0.10.
Economics