14. 15. Suppose a tax of $4 per unit is imposed on a good. The supply curve and the demand curve are straight lines. The tax decreases consumer surplus by $10 and it decreases producer surplus by $10. The tax revenue is $160. From this information it follows that the tax decreased the equilibrium quantity of the good O from 80 to 70. O from 70 to 60. O from 75 to 55. O from 50 to 40. O from 20 to 15. O from 15 to 10. O from 45 to 30. O None of the above. Mark each of the following statements that are true. A tax that has no deadweight loss cannot raise any revenue for the government. A tax that raises no revenue for the government cannot have any deadweight loss. other things equal, a tax on an inelastic good will raise more revenue than an elastic good. None of the above are true
14. 15. Suppose a tax of $4 per unit is imposed on a good. The supply curve and the demand curve are straight lines. The tax decreases consumer surplus by $10 and it decreases producer surplus by $10. The tax revenue is $160. From this information it follows that the tax decreased the equilibrium quantity of the good O from 80 to 70. O from 70 to 60. O from 75 to 55. O from 50 to 40. O from 20 to 15. O from 15 to 10. O from 45 to 30. O None of the above. Mark each of the following statements that are true. A tax that has no deadweight loss cannot raise any revenue for the government. A tax that raises no revenue for the government cannot have any deadweight loss. other things equal, a tax on an inelastic good will raise more revenue than an elastic good. None of the above are true
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question

Transcribed Image Text:14.
15.
Suppose a tax of $4 per unit is imposed on a good. The supply curve and the demand curve are straight lines. The tax decreases consumer surplus by $10 and it decreases producer surplus by $10. The tax revenue is $160.
From this information it follows that the tax decreased the equilibrium quantity of the good
O from 80 to 70.
O from 70 to 60.
O from 75 to 55.
O from 50 to 40.
O from 20 to 15.
O from 15 to 10.
O from 45 to 30.
O None of the above.
Mark each of the following statements that are true.
A tax that has no deadweight loss cannot raise any revenue for the government.
A tax that raises no revenue for the government cannot have any deadweight loss.
other things equal, a tax on an inelastic good will raise more revenue than an elastic good.
None of the above are true
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images

Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education