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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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