Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, the deadweight loss from the tax will be:
A) 200.
B) 400.
C) 1,600.
D) 1,800.

Question

Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, the deadweight loss from the tax will be: 
A) 200. 
B) 400. 
C) 1,600. 
D) 1,800.

Quizplus · Accepted Answer

The Answer of Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. If the government imposes a $4 per-unit tax on this product, the deadweight loss from the tax will be: 
A) 200. 
B) 400. 
C) 1,600. 
D) 1,800.

Refer to the Graph Shown