The graph that represents the amount of deadweight loss (measured on the vertical axis)as a function of the size of the tax (measured on the horizontal axis)looks like
A)a U.
B)an upside-down U.
C)a horizontal straight line.
D)an upward-sloping curve.

Question

Quizplus · Accepted Answer

Deadweight loss increases with the square of the tax size, so the graph is an upward-sloping curve.

The Graph That Represents the Amount of Deadweight Loss (Measured