Consider a Market in Which Demand Is Given by P

question 8

Multiple Choice

Consider a market in which demand is given by P = 30 - 2q and supply is given by P = q.If the government imposes a tax of $6 per unit on suppliers, the resulting DWL is:

• A)$0
• B)$2
• C)$4
• D)$6
• E)$8

---

Definitions:

Parts Warehouse

A storage facility specialized in storing spare parts for various types of machinery or vehicles.

Without Recourse

A legal term indicating that the holder of a financial instrument cannot demand payment from the original issuer in the case of default.

Transfer

The act of moving or conveying property, rights, or obligations from one entity or person to another.