Figure 8-4
The vertical distance between points A and B represents a tax in the market.

-Refer to Figure 8-4.The amount of deadweight loss as a result of the tax is
A) $105.
B) $210.
C) $490.
D) $600.

Question

Figure 8-4
The vertical distance between points A and B represents a tax in the market.
 
-Refer to Figure 8-4.The amount of deadweight loss as a result of the tax is
A) $105. 
B) $210. 
C) $490. 
D) $600.

Quizplus · Accepted Answer

The deadweight loss is the triangle below the demand curve and above the supply curve. The height of the triangle is $15 and the base is $14. Therefore, the area of the triangle is $105.

Figure 8-4 the Vertical Distance Between Points a and B Represents a Represents