Suppose a Tax of $0

question 59

Multiple Choice

Suppose a tax of $0.10 per unit on a good creates a deadweight loss of $100.If the tax is increased to $0.25 per unit,the deadweight loss from the new tax would be

• A)$200.
• B)$250.
• C)$475.
• D)$625.

---

Definitions:

Stipulative Definitions

Definitions that assign a meaning to a word for the first time, without regard for any previous meanings.

Logical Definition

A precise explanation of a term or concept based on its essential attributes and its distinction from related terms.

Genus

A major classification category situated above species and beneath family, employed in the categorization of both living and extinct life forms.

Circularity

A reasoning error where the conclusion is included in the premises or assumed in one of the premises.