Suppose a Tax of $0

question 45

Multiple Choice

Suppose a tax of $0.50 per unit on a good creates a deadweight loss of $100.If the tax is increased to $2.50 per unit,the deadweight loss from the new tax would be

• A)$200.
• B)$250.
• C)$500.
• D)$2,500.

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Definitions:

Courtship

Behavioral interactions between animals aimed at attracting a mate and leading to reproduction.

Peacock Spiders

A genus of spiders known for their colorful patterns and courtship dances, found primarily in Australia.

Systematics

The scientific study of the diversity of organisms and their evolutionary relationships.

Diversity

The condition of having or being composed of differing elements: variety; especially: the inclusion of different types of people (such as people of different races or cultures) in a group or organization.