With Linear Demand and Supply Curves in a Market,suppose a Tax

question 30

Multiple Choice

With linear demand and supply curves in a market,suppose a tax of $0.20 per unit on a good creates a deadweight loss of $40.If the tax is increased to $0.50 per unit,the deadweight loss from the new tax will be

• A)$200.
• B)$250.
• C)$475.
• D)$625.

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Definitions:

Social Surroundings

The societal and cultural factors that influence individuals' behavior, preferences, and interactions within a community or society.

Physical Surroundings

The environmental factors or conditions in a specific location that can affect individuals' behaviors, experiences, and interactions.

Market Leader

A company that has the largest market share in a given industry, dominating the competition in terms of sales, innovation, or brand recognition.

Low-involvement Product

A product that requires minimal thought and effort from the consumer prior to and during purchase.