Assume that for good X the supply curve for a good is a typical,upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.If the good is taxed,and the tax is doubled,the
A)base of the triangle that represents the deadweight loss quadruples.
B)height of the triangle that represents the deadweight loss doubles.
C)deadweight loss of the tax doubles.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

The height of the triangle representing deadweight loss doubles because the tax itself, which is the height, is doubled.

Assume That for Good X the Supply Curve for a Good