Suppose That a Market Is Initially in Equilibrium $P = 90 - Q ^ { d }$

question 5

Multiple Choice

Suppose that a market is initially in equilibrium. The initial demand curve is $P = 90 - Q ^ { d }$ . The initial supply curve is $P = 2 Q ^ { s }$ . Suppose that the government imposes a $\$ 3$ tax on this market. What is the dead-weight loss due to the tax?

• A) \(\$ 3\).
• B) \(\$ 2\).
• C) \(\$ 1.50\).
• D) \(\$ 1.00\).

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Definitions:

Loops of Henle

A section of the nephron in the kidney, crucial for concentrating urine and reabsorbing water and salts from the filtrate.

Mechanical Shock

A physical shock to a system which may cause significant damage or system failure due to sudden impact or force.

Adipose Tissue

A type of connective tissue that is specialized in storing energy as fat, providing insulation and protection to the body.

Renal Pyramid

One of a number of pyramidal masses seen on longitudinal section of the kidney; they contain part of the loops of Henle and the collecting tubules.