Suppose a Tax of $4 Per Unit Is Imposed on a Good,and

question 103

Multiple Choice

Suppose a tax of $4 per unit is imposed on a good,and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units.The tax decreases consumer surplus by $3,000 and decreases producer surplus by $4,400.The deadweight loss of the tax is

• A)$200.
• B)$400.
• C)$600.
• D)$1,200.

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Definitions:

Rods

Light-sensing nerve cells in the eye, at the posterior of the retina, that function in dim light but do not provide sharp images or detect color.

Cones

Light-sensing nerve cells in the eye, at the posterior of the retina, that are sensitive to color, provide sharp images, and function only in bright light.

Retinas

The light-sensitive layer of tissue at the back of the inner eye, essential for converting light into neural signals for vision.

Ciliary Body

The ciliary body is a part of the eye that includes the ciliary muscle, which controls the shape of the lens, and the ciliary epithelium, which produces the aqueous humor.