Multiple Choice
Figure 8-10
-Refer to Figure 8-10.Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2.The deadweight loss of the tax is
A) [ x (P0-P5) x Q5] + [
x (P5-0) x Q5].
B) [ x (P0-P2) x Q2] +[(P2-P8) x Q2] + [
x (P8-0) x Q2].
C) (P2-P8) x Q2.
D) x (P2-P8) x (Q5-Q2) .
Correct Answer:

Verified
Correct Answer:
Verified
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