A Tax of $10 Per Unit Is Imposed on a Certain

question 141

Multiple Choice

A tax of $10 per unit is imposed on a certain good.The supply curve and the demand curve are straight lines.The tax reduces the equilibrium quantity in the market by 200 units.The deadweight loss from the tax is

• A)$2,000.
• B)$,1000.
• C)$500.
• D)$250.

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Definitions:

Fuse

A safety device consisting of a strip of wire that melts and breaks an electric circuit if the current exceeds a safe level.

Excessive Current

A current flow surpassing the designed or safe limit of an electrical circuit or device, potentially leading to overheating or damage.

Total Resistance

The sum of all resistances in an electrical circuit, affecting the overall current flow.

Resistor Values

The resistance offered by a resistor, measured in Ohms, which determines how much it impedes the flow of electric current.