Suppose a tax of $0.50 per unit on a good creates a deadweight loss of $100.If the tax is increased to $2.50 per unit,the deadweight loss from the new tax would be
A)$200.
B)$250.
C)$500.
D)$2,500.

Question

Quizplus · Accepted Answer

The Answer of Suppose a tax of $0.50 per unit on a good creates a deadweight loss of $100.If the tax is increased to $2.50 per unit,the deadweight loss from the new tax would be
A)$200.
B)$250.
C)$500.
D)$2,500.

Suppose a Tax of $0