Use the Following to Answer Questions

question 21

Multiple Choice

Use the following to answer questions:
Figure: Soda Market
-(Figure: Soda Market) Suppose the U.S. Congress passes a tax of $0.70 on each can of soda. Using the diagram and the "wedge shortcut," determine how much deadweight loss this would create.

• A) $10,500
• B) $21,000
• C) $35,000
• D) $70,000

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Definitions:

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, a key mechanism of evolution.

Thought Processes

Thought processes refer to the mental activities involved in understanding, processing, and communicating information.

Accidents

Unplanned, unforeseen events that can cause damage or injury due to a lack of intention or predictable cause.

Blindsight

A phenomenon where people who are perceptually blind in certain areas of their visual field demonstrate some response to visual stimuli without consciously perceiving them.