Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units. The tax decreases consumer surplus by $3,000 and decreases producer surplus by $4,400. The deadweight loss of the tax is     $200.     $400.     $600.     $1,200.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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  1. Suppose a tax of $4 per unit is imposed on a good, and the tax causes the equilibrium quantity of the good to decrease from 2,000 units to 1,700 units. The tax decreases consumer surplus by $3,000 and decreases producer surplus by $4,400. The deadweight loss of the tax is

       

    $200.

       

    $400.

       

    $600.

       

    $1,200.

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