Suppose a Tax of $4 Per Unit Is Imposed on a Good,and

question 103

Multiple Choice

Suppose a tax of $4 per unit is imposed on a good,and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units.The tax decreases consumer surplus by $3,000 and decreases producer surplus by $4,400.The deadweight loss of the tax is

• A)$200.
• B)$400.
• C)$600.
• D)$1,200.

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Definitions:

Total Fertility Rate

The total fertility rate measures the average number of children a woman would have over her lifetime, based on current birth rates, and is a critical indicator in demographic studies.

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Replacement Level

The fertility rate at which a population exactly replaces itself from one generation to the next, without migration.

Demographic Transition

A theory describing the transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.