Suppose That a Market Is Initially in Equilibrium

question 40

Multiple Choice

Suppose that a market is initially in equilibrium.The initial demand curve is The initial supply curve is Suppose that the government imposes a $3 tax on this market.What is the dead-weight loss due to the tax?

• A) $3.
• B) $2.
• C) $1.50.
• D) $1.00.

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Definitions:

Housing Opportunities

Chances or prospects for individuals or families to find affordable and suitable accommodation, often facilitated by policies, programs, or market conditions.

Housing Segregation

The practice of separating living spaces into different areas based on racial, economic, or social differences.

Racial Inequality

A disparity in opportunity and treatment experienced by people based on their race, often embedded in systems of education, employment, and justice.

Accumulate Wealth

The process of gathering and increasing assets, resources, or money over time.