Use the Following to Answer Questions

question 196

Multiple Choice

Use the following to answer questions:
Figure: Consumer and Producer Surplus
-(Figure: Consumer and Producer Surplus) According to the figure, what would happen to the deadweight loss if the tax increased to $2 per basket of apples?

• A) The new tax would minimize deadweight loss.
• B) Deadweight loss does not change due to a change in the tax.
• C) Deadweight loss will decrease due to a change in the tax.
• D) Deadweight loss will increase.

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Definitions:

Friendster

An early social networking site that allowed users to connect with friends and family, predating modern platforms like Facebook.