Suppose a Tax Is Imposed on Each New Hearing Aid

question 194

Multiple Choice

Suppose a tax is imposed on each new hearing aid that is sold. The supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. As a result of the tax, the equilibrium quantity of hearing aids decreases from 10,000 to 9,000, and the deadweight loss of the tax is $60,000. We can conclude that the tax on each hearing aid is

• A)$60.
• B)$120.
• C)$160.
• D)$200.

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Definitions:

Suicidality

The risk or tendency towards suicide, including thoughts, plans, and attempts.

Cognitive Rigidity

The tendency to be closed to new ideas or approaches; difficulty in changing mental frameworks or strategies.

Rumination

Focusing on one’s personal concerns and feelings of distress repetitively and passively.

Perfectionism

The need to be or appear to be perfect, or even to believe that it's possible to achieve perfection.