Suppose Luke values a scoop of Italian gelato at $4 . Leia values a scoop of Italian gelato at $6 . The pre-tax price of a scoop of Italian gelato is $2 . The government imposes a "fat tax" of $3 on each scoop of Italian gelato, and the price rises to $5 . The deadweight loss from the tax is
a. $1.
b. $2.
c. $3.
d. $4.
b
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In light of higher gas prices, Skip Miles asks himself if it's worth keeping his 10 cylinder Chevy Suburban. His concern is ultimately about
A) engineering efficiency. B) economic efficiency. C) technical efficiency. D) environmental efficiency.
Concentration ratios have not been studied much in the last century
a. True b. False Indicate whether the statement is true or false
A theory is a perfect description of reality
Indicate whether the statement is true or false
Country X subsidizes industry A. A worldwide recession has hit and Country X has decided to export Good A worldwide, selling the product for less than it costs to produce it. This is
A) the infant industry argument. B) comparative advantage argument. C) dumping. D) a regional trade bloc.