Suppose Tyler values a basketball at $20 . Jacqui values a basketball at $16 . The pre-tax price of a basketball $15 . The government imposes a tax of $2 on each basketball, and the price rises to $17 . The deadweight loss from the tax is
a. $1.
b. $2.
c. $3.
d. $6.
a
Economics
You might also like to view...
The price elasticity of demand for labor will be greater, the
A) greater is the price elasticity of demand for the final product. B) more difficult it is to employ substitute inputs in production. C) smaller is the proportion of wage costs in the total cost of production. D) shorter is the time period under examination.
Economics
Among male workers over age 25, about what percent has a college degree? What is this percentage for black male workers over age 25?
Economics
All of the following are a current account transaction EXCEPT
A) importing services. B) exporting goods. C) investing abroad. D) importing goods.
Economics
Explain what is a "vehicle currency." Why is the U.S. dollar considered a vehicle currency?
What will be an ideal response?
Economics