Suppose a Tax of $4 Per Unit Is Imposed on a Good,and

question 103

Multiple Choice

Suppose a tax of $4 per unit is imposed on a good,and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units.The tax decreases consumer surplus by $3,000 and decreases producer surplus by $4,400.The deadweight loss of the tax is

• A)$200.
• B)$400.
• C)$600.
• D)$1,200.

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Definitions:

Glycogen

A form of stored glucose found in the liver and muscles; it's broken down into glucose when energy is needed.

Polysaccharide

A complex carbohydrate composed of long chains of monosaccharide units bonded together, serving as energy storage or structural components in organisms.

Glucose

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

GDDR6

An advanced version of graphics double data rate SDRAM, intended for use in graphics cards, game consoles, and high-performance computing.