Refer to the figure above. What is the deadweight loss of the tariff imposed by the government?
A) $10
B) $20
C) $30
D) $40
A
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Which of the following statements is correct?
A. The operation of a market system eventually results in an equal distribution of income B. Producers are "sovereign" in a market economy because they determine what is produced C. The market system is efficient at allocating resources, but not at allocating products D. Freedom of choice and enterprise are essential elements of the market system
Answer the following questions true (T) or false (F)
1. If the demand for a product decreases and the supply of the product does not change, equilibrium price and equilibrium quantity will both increase. 2. If the demand curve for a product shifts to the right and the supply curve for the product shifts to the left, equilibrium price and equilibrium quantity will both increase. 3. A monopoly is defined as a firm that has the largest market share in an industry.