Which of the following is NOT true about the $3 per pizza tax illustrated in the above figure?
A) It decreases consumer surplus by $90 thousand.
B) It decreases producer surplus by $45 thousand.
C) It creates a deadweight loss of $135 thousand.
D) None of the above because they are all true.
C
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The level of long-run aggregate supply is affected by all of the following except
A) changes in the capital stock. B) changes in the number of workers. C) changes in the technology. D) changes in the price level.
Assume that when the price of cantaloupes is $2.50 the demand for cantaloupes is unit-elastic, and that the demand curve for cantaloupes is linear and downward sloping
If firms lower the price of cantaloupes to $2.00 which of the following statements can be made regarding the price elasticity of demand for cantaloupes? A) The demand for cantaloupes at $2.00 must be elastic. B) The demand for cantaloupes at $2.00 must be unit elastic. C) We cannot determine whether the demand for cantaloupes is elastic or inelastic without knowing what the quantity demanded is at each price. D) The demand for cantaloupes at $2.00 must be inelastic.
The demand for money schedule shows that the quantity of money that people want to hold
A. rises as income rises. B. falls as income rises. C. falls as the interest rate rises. D. falls as the real price of money rises.
Which of the following is a means-tested income transfer program?
a. Social Security b. Medicare c. unemployment compensation d. earned income tax credit