Reference: Ref 10-7 (Figure: Softella) the Figure Shows a Market

question 57

Multiple Choice

Reference: Ref 10-7 (Figure: Softella) The figure shows a market for medicated tissues. Assume that the only use for these tissues is to wipe and clean one's hands thus preventing germs from spreading to other people. If the government were to subsidize the users of these tissues, what is the dollar amount of deadweight loss that would be removed from this market?

• A) $1,600
• B) $2,800
• C) $5,600
• D) $800

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Definitions:

Body Language

Nonverbal communication through body movements, gestures, and facial expressions, conveying feelings and intentions.