A Tax of $0

question 125

Multiple Choice

A tax of $0.25 is imposed on each bag of potato chips that is sold. The tax decreases producer surplus by $600 per day, generates tax revenue of $1,220 per day, and decreases the equilibrium quantity of potato chips by 120 bags per day. The tax

• A)decreases consumer surplus by $645 per day.
• B)decreases the equilibrium quantity from 6,000 bags per day to 5,880 bags per day.
• C)decreases total surplus from $3,000 to $1,800 per day.
• D)creates a deadweight loss of $15 per day.

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Definitions:

Remarried Couples

Couples who have entered into marriage again after one or both partners have been previously married.

Yours, Mine, And Ours

A phrase often used to describe blended families that include children from previous relationships as well as any current union.

Community Remarriage

The cultural or societal practices and norms surrounding the re-marriage of individuals within a community, which can influence attitudes towards and acceptance of remarried couples.

Valuable Friendships

Deep and meaningful relationships that significantly contribute to one's well-being and life satisfaction.