Suppose Darby Values a Certain Smart Phone at $400

question 530

Multiple Choice

Suppose Darby values a certain smart phone at $400. Jake values the same smart phone at $300. The pre-tax price of this smart phone is $250. The government imposes a tax of $75 on each smart phone, and the price rises to $325. The deadweight loss from the tax is

• A)$150.
• B)$100.
• C)$50.
• D)$0.

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Definitions:

Late Adolescence

Late Adolescence is a phase of human development that typically occurs from ages 15 to 19, characterized by continued physical, cognitive, and emotional growth, and a further development of identity and independence.

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A disorder in which anxiety is a central symptom.

U.S. Adults

Individuals residing in the United States who are legally considered adults, typically over the age of 18.

6 Percent

A quantitative value or measurement, often referred to in statistical, financial, or performance contexts, indicating a portion out of a hundred.