If the Tax on a Good Is Increased from $1

question 347

Multiple Choice

If the tax on a good is increased from $1 per unit to $3 per unit,the deadweight loss from the tax increases by a factor of

• A) 2.
• B) 3.
• C) 9.
• D) 18.

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Definitions:

Whole Number

A number without fractions or decimals; an integer that can be positive, negative, or zero.

Decimal Place

The position of a number to the right of a decimal point, indicating the value's fractional part.

Multiplier

A number by which another number is multiplied to yield a product.

Fraction

A mathematical expression representing the division of one quantity by another, denoting parts of a whole or a ratio.