Assume That for Good X the Supply Curve for a Good

question 54

Multiple Choice

Assume that for good X the supply curve for a good is a typical,upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.If the good is taxed,and the tax is doubled,the

• A)base of the triangle that represents the deadweight loss doubles.
• B)height of the triangle that represents the deadweight loss doubles.
• C)deadweight loss of the tax quadruples.
• D)All of the above are correct.

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Definitions:

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