Suppose a Tax of $0

question 45

Multiple Choice

Suppose a tax of $0.50 per unit on a good creates a deadweight loss of $100.If the tax is increased to $2.50 per unit,the deadweight loss from the new tax would be

• A)$200.
• B)$250.
• C)$500.
• D)$2,500.

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Definitions:

Global Air Circulation

The large-scale movement of air through the earth's atmosphere, distributing heat and moisture around the planet.

Grazing Livestock

The practice of keeping domesticated animals such as cattle, sheep, and goats, allowing them to feed on grass and other pasture vegetations.

Tropical Cyclones

Powerful storm systems characterized by a low-pressure center, strong winds, and heavy rain, forming over warm tropical oceans.