Suppose a Tax of $5 Per Unit Is Imposed on a Good.The

question 214

Multiple Choice

Suppose a tax of $5 per unit is imposed on a good.The supply curve and the demand curve are straight lines.The tax decreases consumer surplus by $10,000 and it decreases producer surplus by $15,000.The deadweight loss of the tax is $2,500.From this information it follows that the tax decreased the equilibrium quantity of the good

• A)from 6,500 to 5,500.
• B)from 5,500 to 4,500.
• C)from 5,000 to 3,000.
• D)from 6,000 to 4,000.

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Definitions:

Species

A group of living organisms consisting of similar individuals capable of exchanging genes or interbreeding.

Isolated Conditions

Circumstances or areas that are solitary, remote, or separated from others.

Lateralization

Specialization of function in one hemisphere of the cerebral cortex or the other.

Cerebral Cortex

The outer layer of the brain, involved in high-order functions such as thought, language, and consciousness.