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Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
Edition 6ISBN: 978-1133708735 Exercise 11
Figure 1 shows the deadweight loss from a tax on airline tickets when demand is less elastic than in Figure 2.
a. What is the annual deadweight loss from the tax in dollars? [See the hint in the previous problem.]
b. What is the annual government revenue from the tax in dollars?
c. Use your answers above to calculate the deadweight loss per dollar of government revenue.
Figure 1 Deadweight Loss from a Tax When Demand Is More Inelastic
![Figure 1 shows the deadweight loss from a tax on airline tickets when demand is less elastic than in Figure 2. a. What is the annual deadweight loss from the tax in dollars? [See the hint in the previous problem.] b. What is the annual government revenue from the tax in dollars? c. Use your answers above to calculate the deadweight loss per dollar of government revenue. Figure 1 Deadweight Loss from a Tax When Demand Is More Inelastic Figure 2 Deadweight Loss from an Excise Tax](https://storage.examlex.com/SM3044/11eb872f_ac7b_3364_a220_93f824477b59_SM3044_00.jpg)
Figure 2 Deadweight Loss from an Excise Tax
![Figure 1 shows the deadweight loss from a tax on airline tickets when demand is less elastic than in Figure 2. a. What is the annual deadweight loss from the tax in dollars? [See the hint in the previous problem.] b. What is the annual government revenue from the tax in dollars? c. Use your answers above to calculate the deadweight loss per dollar of government revenue. Figure 1 Deadweight Loss from a Tax When Demand Is More Inelastic Figure 2 Deadweight Loss from an Excise Tax](https://storage.examlex.com/SM3044/11eb872f_ac7b_5a75_a220_d73da865d21d_SM3044_00.jpg)
a. What is the annual deadweight loss from the tax in dollars? [See the hint in the previous problem.]
b. What is the annual government revenue from the tax in dollars?
c. Use your answers above to calculate the deadweight loss per dollar of government revenue.
Figure 1 Deadweight Loss from a Tax When Demand Is More Inelastic
Figure 2 Deadweight Loss from an Excise Tax
Explanation
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Verified
Deadweight loss is the sum of production...
Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman
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