Assume That for Good X the Supply Curve for a Good

question 54

Multiple Choice

Assume that for good X the supply curve for a good is a typical,upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.If the good is taxed,and the tax is doubled,the

• A)base of the triangle that represents the deadweight loss doubles.
• B)height of the triangle that represents the deadweight loss doubles.
• C)deadweight loss of the tax quadruples.
• D)All of the above are correct.

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Definitions:

Two-tail Test

A statistical test that considers both the directions of a possible effect, testing for the possibility of positive or negative deviations from the null hypothesis.

Sample Variances

A measure of the dispersion or variability within a sample data set, which indicates how much the sample elements differ from the sample mean.

Test Statistic

A standardized value that is calculated from sample data during a hypothesis test. It's used to determine whether to reject the null hypothesis.

Two-tail Test

A statistical test where the critical area of a distribution is two-sided and tests whether a sample is greater than or less than a certain range of values.