Suppose the demand curve and the supply curve in a market are both linear. To begin, there was a $5 tax per unit, and the $5 tax resulted in a deadweight loss of $1,500 . Now, the tax per unit is higher, with the higher tax resulting in a deadweight loss of $6,000 . What is the amount of the new tax per unit?
The new tax per unit is $10 . Doubling the size of the tax quadruples the size of the deadweight loss.
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The democratic political process is weighted in a manner that favors
A) contractionary over expansionary fiscal and monetary policies because changes in aggregate demand tend to affect output before they affect the price level. B) contractionary over expansionary fiscal and monetary policies because changes in aggregate demand tend to affect the price level before they affect output. C) expansionary over contractionary policies because changes in aggregate demand tend to affect output before they affect the price level. D) expansionary over contractionary policies because changes in aggregate demand tend to affect the price level before they affect output.
The Keynesian theory focuses on aggregate supply, while the classical theory focused on aggregate demand
a. True b. False Indicate whether the statement is true or false
A low price-earnings ratio usually indicates that people believe that this corporation will have lower than average growth in earnings
Indicate whether the statement is true or false
The labor force participation rate among both men and women 25 to 54 ________ from 2000 to today.
A. rose dramatically B. fell (particularly for men) C. stayed relatively constant D. rapidly vacillated