In Which of the Following Instances Would the Deadweight Loss

question 63

Multiple Choice

In which of the following instances would the deadweight loss of the tax on airline tickets increase by a factor of 9?

• A)The tax on airline tickets increases from $20 per ticket to $60 per ticket.
• B)The tax on airline tickets increases from $20 per ticket to $90 per ticket.
• C)The tax on airline tickets increases from $15 per ticket to $60 per ticket.
• D)The tax on airline tickets increases from $15 per ticket to $135 per ticket.

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Definitions:

Encryption

The process of converting an original message into a form that cannot be read by anyone except the intended recipient.

Radio

The technology of transmitting signals, voice, and music by modulating electromagnetic waves without wires.

Satellite

An object that has been intentionally placed into orbit around the Earth or another celestial body.

Microwave

A type of electromagnetic radiation with wavelengths ranging from one meter to one millimeter; used in a variety of technologies, including microwave ovens that heat food.