Multiple Choice
In the market for widgets,the supply curve is the typical upward-sloping straight line,and the demand curve is the typical downward-sloping straight line.The equilibrium quantity in the market for widgets is 200 per month when there is no tax.Then a tax of $5 per widget is imposed.The price paid by buyers increases by $2 and the after-tax price received by sellers falls by $3.The government is able to raise $750 per month in revenue from the tax.The deadweight loss from the tax is
A) $250.
B) $125.
C) $75.
D) $50.
Correct Answer:

Verified
Correct Answer:
Verified
Q56: When a good is taxed,<br>A)both buyers and
Q137: Suppose a tax of $5 per unit
Q200: Figure 8-4<br>The vertical distance between points A
Q201: Figure 8-5<br>Suppose that the government imposes a
Q202: A tax placed on a good<br>A)causes the
Q204: Figure 8-5<br>Suppose that the government imposes a
Q206: Figure 8-3<br>The vertical distance between points A
Q207: Figure 8-1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 8-1
Q208: Figure 8-12 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2297/.jpg" alt="Figure 8-12
Q210: Figure 8-6<br>The vertical distance between points A