Reference: Ref 10-4 (Figure: Market for Bathroom Cleaner) the Figure

question 101

Multiple Choice

Reference: Ref 10-4 (Figure: Market for Bathroom Cleaner) The figure shows a market for cans of bathroom cleaner that causes environmental damage, imposing costs on people other than the consumers and producers of the cleaner. If consumers were taxed such that they only purchased the efficient quantity of the product, how much deadweight loss would be removed from this market?

• A) $90
• B) $180
• C) $45
• D) $255

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Definitions:

High-tech Industries

Sectors that are heavily involved in the development and production of technology, including computing, telecommunications, and biotechnology.

Double-Entry Accounting

An accounting system in which every business transaction is recorded in an asset account and a liability or owner’s equity account so that the system will balance.

Owner's Equity

The residual interest in the assets of a company after subtracting liabilities, often referred to as shareholder's equity in a corporation.

Liabilities

Financial obligations or debts that a company or individual owes to others.