Suppose a Tax of $3 Is Imposed on Each New

question 152

Multiple Choice

Suppose a tax of $3 is imposed on each new garden hose that is sold,resulting in a deadweight loss of $22,500.The supply curve is a typical upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.Before the tax was imposed,the equilibrium quantity of garden hoses was 100,000.We can conclude that the equilibrium quantity of garden hoses after the tax is imposed is

• A)75,000.
• B)85,000.
• C)90,000.
• D)95,000.

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Definitions:

Subset

A part or portion of a larger group or set that shares certain characteristics or criteria, distinguishing it from the broader group.

Generalizability

concerns the extent to which the findings from a study or research can be applied or extended to other contexts or populations.

White Supremacists

Individuals or groups who believe in the superiority of white people over those of other races, often advocating for segregation, racism, and intolerance.

Rural Midwestern

Pertaining to or characteristic of the countryside rather than the town within the Midwest region of the United States.