The deadweight loss from the new tax

Assignment Help Business Economics

Reference no: EM13860979

Suppose a tax of $.10 per unit on a good creates a deadweight loss of $100. If the tax is increased to $0.30 per unit, the deadweight loss from the new tax would be:

a. $200.

b. $300.

c. $900.

d. $9,000.

Reference no: EM13860979

Questions Cloud

Producer surplus is equal to gain of government revenue : Total surplus in a market does not change when the government imposes a tax on that market because the loss of consumer surplus and producer surplus is equal to the gain of government revenue. Taxes cause deadweight losses because they prevent buyers..

How do i display a message in the browsers status bar : How do I display a message in the browser's status bar? What are the main differences between applets and applications?

How successfully manage conflict in organizations : What types of skills do managers need to successfully manage conflict in their organizations. Which of these skills do you possess

If the labor supply curve is very elastic : If the labor supply curve is very elastic, a tax on labor:

The deadweight loss from the new tax : Suppose a tax of $.10 per unit on a good creates a deadweight loss of $100. If the tax is increased to $0.30 per unit, the deadweight loss from the new tax would be:

Revenue recognition methods : For each firm, are the revenue recognition methods described reasonable? Explain in detail. In most cases, IFRS accounting rules provide only general revenue recognition guidelines. For the two firms above, discuss whether detailed revenue recognit..

Efficiency refers to whether market outcome is fair : Efficiency refers to whether a market outcome is fair, whereas equality refers to whether the maximum amount of output was produced from a given number of inputs. When a good is taxed, the tax revenue collected by the government equals the decrease i..

How can i connect from an applet to a database on the server : 1) How do I create an applet that accepts an unlimited number of parameters? 2) How can I connect from an applet to a database on the server?

What is the equilibrium outcome in the game? : What is the equilibrium outcome in this game?

User Account

All Pages