Suppose a tax of $0.50 per unit on a good creates a deadweight loss of $100 . If the tax is increased to $2.50 per unit, the deadweight loss from the new tax would be

Price cannot fall so low that some sellers choose to supply a quantity of zero

a. True b. False Indicate whether the statement is true or false

A government airline safety regulation reduces the probability of a fatal airline crash by 0.005. If the costs associated with each airplane crash are equal to $600 million, the regulation has an expected marginal benefit of at least:

A. $3,000,000. B. $600,000. C. $1,000,000. D. $2,000,000.