Suppose the market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, both measured in millions of gallons of ice cream per year. Suppose the government imposes a $0.50 tax on each gallon of ice cream. The deadweight loss due to the tax is:
A. $944,444.
B. $2.83 million.
C. $1.67 million.
D. $1.89 million.
B. $2.83 million.
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The federal spending policies of the Great Depression were clearly expansionary and helped return the U.S. economy to the low levels of unemployment experienced during the 1920s
Indicate whether the statement is true or false
If firms increase investment, the aggregate expenditures function will shift upward, other things being equal
a. True b. False Indicate whether the statement is true or false
The production possibilities frontier has a tendency to bow outward from the origin
a. True b. False Indicate whether the statement is true or false
Which of the following is an example of a compensating differential?
a. paying workers with more years of experience higher wages than workers with fewer years of experience, all else equal b. paying workers who work on the day shift lower wages than workers who work the night shift, all else equal c. paying accountants who have passed the Certified Public Accountant exam higher wages than accountants who have not passed it, all else equal d. All of the above are examples of compensating differentials.