Figure 8-21
-Refer to Figure 8-21.Suppose the government places a $3 per-unit tax on this good.The largest deadweight loss from the tax would occur in a market where demand is represented by
A)Demand 1,and supply is represented by Supply 1.
B)Demand 1,and supply is represented by Supply 2.
C)Demand 2,and supply is represented by Supply 1.
D)Demand 2,and supply is represented by Supply 2.

Question

Figure 8-21 
-Refer to Figure 8-21.Suppose the government places a $3 per-unit tax on this good.The largest deadweight loss from the tax would occur in a market where demand is represented by
A)Demand 1,and supply is represented by Supply 1. 
B)Demand 1,and supply is represented by Supply 2. 
C)Demand 2,and supply is represented by Supply 1. 
D)Demand 2,and supply is represented by Supply 2.

Quizplus · Accepted Answer

The Answer of Figure 8-21 
-Refer to Figure 8-21.Suppose the government places a $3 per-unit tax on this good.The largest deadweight loss from the tax would occur in a market where demand is represented by
A)Demand 1,and supply is represented by Supply 1. 
B)Demand 1,and supply is represented by Supply 2. 
C)Demand 2,and supply is represented by Supply 1. 
D)Demand 2,and supply is represented by Supply 2.

Figure 8-21 -Refer to Figure 8-21.Suppose the Government Places a $3 Per-Unit