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  3. Study Set
    Principles of Macroeconomics Study Set 8
  4. Exam
    Exam 8: Application the Cost of Taxation: The Deadweight Loss of Taxation
  5. Question
    Suppose a Tax of $4 Per Unit Is Imposed on a Good,and
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Suppose a Tax of $4 Per Unit Is Imposed on a Good,and

Question 103

Question 103

Multiple Choice

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


A) $200.
B) $400.
C) $600.
D) $1,200.

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