Suppose a tax on sellers has been imposed in the graph shown. The amount of deadweight loss generated by this tax is:
A. $80.
B. $160.
C. $129.50.
D. $0.
Answer: A
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
According to this Application, which of the following is a reason for holding cash?
A) for convenience B) fear of financial catastrophe C) to make a purchase when you cannot use a debit or credit card D) all of the above
With ________ finance, borrowers obtain funds from lenders by selling them securities in the financial markets
A) active B) determined C) indirect D) direct
A tax of $1 on buyers shifts the demand curve downward by exactly $1
a. True b. False Indicate whether the statement is true or false