For Widgets,the Supply Curve Is the Typical Upward-Sloping Straight Line,and

question 164

Multiple Choice

For widgets,the supply curve is the typical upward-sloping straight line,and the demand curve is the typical downward-sloping straight line.A tax of $15 per unit is imposed on widgets.The tax reduces the equilibrium quantity in the market by 300 units.The deadweight loss from the tax is

• A)$1,750.
• B)$2,250.
• C)$3,000.
• D)$4,500.

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Definitions:

Product Adopters

Individuals or entities that purchase and utilize new products or technologies early in their lifecycle.

Laggard Group

The last segment of a population to adopt new technologies or innovations, often resistant to change and skeptical of new trends.

Advance Consumption

The purchase or usage of a product or service before its actual need or before it is physically received.

Experience

encompasses the knowledge or practical wisdom gained from what one has observed, encountered, or undergone in life or in a particular field.