The vertical distance between points A and B represents a tax in the market.Price121110Supply8 +42Demand05 1 15 2 25 3 35 4 45 5Quantity1. Refer to Figure 7-2. The amount ofdeadweight loss as a result of the tax isa. $5.b. $10.c. $2.50.d. $7.50.2. Refer to Figure 10-2. The tax incidence onsellers isa. $5b. $6C. $3d. $2

12 11 10 + Supply 8+ 5- 2 Demand 05 1 15 2 2s 3 35 4 45 s ++ Quantity 1. Refer to Figure 7-2. The amount of deadweight loss as a result of the tax is a. $5. b. $10. c. $2.50. d. $7.50. 2 Refer to Figure 10-2 nce ON 2 The tay incide 1.

12 11 10 + Supply 8+ 5- 2 Demand 05 1 15 2 2s 3 35 4 45 s ++ Quantity 1. Refer to Figure 7-2. The amount of deadweight loss as a result of the tax is a. $5. b. $10. c. $2.50. d. $7.50. 2 Refer to Figure 10-2 nce ON 2 The tay incide 1.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The vertical distance between points A and B represents a tax in the market.
Price
12
11
10
Supply
8 +
4
2
Demand
05 1 15 2 25 3 35 4 45 5
Quantity
1. Refer to Figure 7-2. The amount of
deadweight loss as a result of the tax is
a. $5.
b. $10.
c. $2.50.
d. $7.50.
2. Refer to Figure 10-2. The tax incidence on
sellers is
a. $5
b. $6
C. $3
d. $2

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