Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units. The tax decreases consumer surplus by $3,000 and decreases producer surplus by $4,400 . The deadweight loss of the tax is

What are Pigouvian taxes and subsidies? How do governments decide when to levy a tax or provide a subsidy?

What will be an ideal response?

Which of the industries listed below relies the most on patent protection to recoup its investments on research and development?

A. the pharmaceutical industry B. the dairy industry C. the restaurant industry D. the citrus industry