A Tax of $20 Per Unit Is Imposed on a Certain

question 103

Multiple Choice

A tax of $20 per unit is imposed on a certain market.The tax reduces the equilibrium quantity in the market by 200 units.What is the deadweight loss from the tax

• A)$500
• B)$2000
• C)$3500
• D)$4000

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Definitions:

Systematic Desensitization

is a behavioral therapy technique used to reduce phobias and anxieties by gradually exposing the patient to the anxiety source or its context without the intention to cause any harm.

Cognitive-Behavioral Therapy

Cognitive-behavioral therapy is a form of psychological treatment that addresses maladaptive thinking patterns to improve emotional regulation and develop personal coping strategies.

Free Association

A psychoanalytic technique in which a patient says whatever comes to mind without censorship, used to uncover subconscious thoughts and feelings.

Psychoanalytic

A therapeutic approach and theory of personality development that emphasizes unconscious motives and conflicts, originally developed by Sigmund Freud.