Assume That a $0

question 99

Multiple Choice

Assume that a $0.25/gallon tax on milk causes a loss of $250 million in consumer and producer surplus and creates a deadweight loss of $45 million.From this information,we know that the tax revenue from the tax is

• A) $250 million.
• B) $45 million.
• C) $205 million.
• D) $295 million.
• E) $75 million.

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Definitions:

Reaction

A transformation process where reactants are converted into different substances known as products.

Ethyl Acetate

An organic compound used as a solvent in many applications, characterized by its pleasant smell and formula CH3COOCH2CH3.

Ethanol

A colorless, flammable liquid, commonly known as alcohol, used in beverages and as a solvent and fuel.

Carbon Compounds

Organic compounds that contain carbon atoms and typically hydrogen, possibly along with other elements.