In Which of the Following Instances Would the Deadweight Loss

question 63

Multiple Choice

In which of the following instances would the deadweight loss of the tax on airline tickets increase by a factor of 9?

• A)The tax on airline tickets increases from $20 per ticket to $60 per ticket.
• B)The tax on airline tickets increases from $20 per ticket to $90 per ticket.
• C)The tax on airline tickets increases from $15 per ticket to $60 per ticket.
• D)The tax on airline tickets increases from $15 per ticket to $135 per ticket.

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Definitions:

Expected Frequency

In statistics, it is the theoretical frequency of occurrence of an event based on the assumptions of a distribution model.

Groups

Collections or sets of individuals or objects that are studied in experiments, often defined by sharing certain characteristics or conditions.

Total N

Total N refers to the total number of observations or samples in a study or experiment.

Chi-square Statistic

A statistic used to assess the fit of an observed distribution to an expected distribution.