In the Market for Widgets,the Supply Curve Is the Typical

question 205

Multiple Choice

In the market for widgets,the supply curve is the typical upward-sloping straight line,and the demand curve is the typical downward-sloping straight line.The equilibrium quantity in the market for widgets is 200 per month when there is no tax.Then a tax of $5 per widget is imposed.The price paid by buyers increases by $2 and the after-tax price received by sellers falls by $3.The government is able to raise $750 per month in revenue from the tax.The deadweight loss from the tax is

• A)$250.
• B)$125.
• C)$75.
• D)$50.

---

Definitions:

Nurses' Wages

Compensation paid to nursing professionals, influenced by factors like location, experience, and education level.

Marginal Resource Cost

The additional cost incurred by using one more unit of a resource in the production process, often linked to labor or material inputs.

Labor Market

encompasses the supply of labor (workers seeking employment) and demand for labor (employers seeking workers) within an economy, influencing wages and employment levels.

Monopsonistic Labor Market

A labor market characterized by a single large buyer of labor, which results in lower wages and decreased employment levels compared to competitive markets.