Suppose a tax of $3 is imposed on each new garden hose that is sold,resulting in a deadweight loss of $22,500.The supply curve is a typical upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.Before the tax was imposed,the equilibrium quantity of garden hoses was 100,000.We can conclude that the equilibrium quantity of garden hoses after the tax is imposed is
A) 75,000.
B) 85,000.
C) 90,000.
D) 95,000.
Correct Answer:
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Q191: A tax
A)lowers the price buyers pay and
Q192: Figure 8-9
The vertical distance between points A
Q193: Figure 8-9
The vertical distance between points A
Q194: Figure 8-9
The vertical distance between points A
Q195: Figure 8-9
The vertical distance between points A
Q197: Figure 8-9
The vertical distance between points A
Q198: Diana is a personal trainer whose client
Q199: Tom walks Bethany's dog once a day
Q200: Figure 8-9
The vertical distance between points A
Q201: Figure 8-10
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