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.

d

Economics

You might also like to view...

The median voter model suggests that _____

a. extreme candidates are unlikely to change positions over time b. extreme candidates have an easier time winning election because of the fervor of their supporters c. extreme candidates will have a difficult time winning election d. extreme candidates will be able to move a party's platform to better fit their positions

Economics

Mike is an automobile worker. Because of technological changes in the way automobiles are produced and the increased use of automation, Mike was recently laid off and is currently seeking another job. Mike is best described as being

a. frictionally unemployed b. structurally unemployed c. seasonally unemployed d. not in the labor force e. cyclically unemployed

Economics