A Tax of $0

question 125

Multiple Choice

A tax of $0.25 is imposed on each bag of potato chips that is sold. The tax decreases producer surplus by $600 per day, generates tax revenue of $1,220 per day, and decreases the equilibrium quantity of potato chips by 120 bags per day. The tax

• A)decreases consumer surplus by $645 per day.
• B)decreases the equilibrium quantity from 6,000 bags per day to 5,880 bags per day.
• C)decreases total surplus from $3,000 to $1,800 per day.
• D)creates a deadweight loss of $15 per day.

---

Definitions:

Medication Error

Any preventable event that may cause or lead to inappropriate medication use or patient harm.

Continuing Education

Continuing education refers to the process of engaging in further study after formal education, typically to learn new skills or maintain professional certification.

Safety Culture

The shared values, beliefs, and practices within an organization that influence its commitment to health and safety management.

Anticipated Census

An estimate of the number of individuals within a defined population at a future point in time, often used in planning and resource allocation.