Suppose a Tax of $0

question 59

Multiple Choice

Suppose a tax of $0.10 per unit on a good creates a deadweight loss of $100.If the tax is increased to $0.25 per unit,the deadweight loss from the new tax would be

• A)$200.
• B)$250.
• C)$475.
• D)$625.

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Definitions:

Thumb

The first digit located on the lateral side of the hand, important for gripping and manipulating objects.

Olecranon Process

The pointed bone at the upper end of the ulna, around which the elbow joint forms and functions.

Musculocutaneous Nerve

A nerve in the arm that innervates the muscles of the anterior compartment of the forearm and provides sensation to the skin over the lateral aspect of the forearm.

Forced Expiration

The act of expelling air from the lungs with effort beyond normal exhalation.