With Linear Demand and Supply Curves in a Market,suppose a Tax

question 30

Multiple Choice

With linear demand and supply curves in a market,suppose a tax of $0.20 per unit on a good creates a deadweight loss of $40.If the tax is increased to $0.50 per unit,the deadweight loss from the new tax will be

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

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Definitions:

Organic Molecules

Organic molecules are compounds found in living organisms composed primarily of carbon atoms in rings or long chains, where other atoms like hydrogen, oxygen, nitrogen, and phosphorus are also attached.

Fingernails

Hard, flat structures covering the tips of the fingers in humans and other primates, composed largely of keratin.

Anxiety

A sense of tension or concern, generally caused by an impending event or an outcome that is undecided.

Reinforcement

In psychology, a consequence applied to an organism's behavior that increases the likelihood of the behavior recurring in the future.