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:

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The branch of psychology that focuses on understanding individual differences in behavior, emotion, and thought patterns.

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A theoretical approach in psychology that seeks to explain mental and psychological traits as adaptations, i.e., as the functional products of natural selection.