(Figure: The Market for Music Downloads) Use Figure: The Market for Music Downloads.If the government imposes a tax of $3 in this market,the deadweight loss will equal:

A) $0.
B) $22.50.
C) $26.25.
D) $52.50.

Question

Kerry Harris · Accepted Answer

Final Answer : B, Explanation :  The deadweight loss from a tax is represented by the area of the triangle formed between the supply and demand curves over the quantity affected by the tax. In this case, without the specific figure, the general principle is that a tax causes a decrease in the quantity traded, leading to a loss of economic efficiency. The correct answer, $22.50, likely comes from calculating the area of this triangle based on given supply and demand curves and the tax amount.

(Figure: The Market for Music Downloads) Use Figure: The Market for Music Downloads.If the government imposes a tax of $3 in this market,the deadweight loss will equal:

A) $0.
B) $22.50.
C) $26.25.
D) $52.50.

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Learning Objectives

Related questions

(Figure: The Market for Music Downloads) Use Figure: The Market for Music Downloads.If the government imposes a tax of $3 in this market,the deadweight loss will equal:A) $0.B) $22.50.C) $26.25.D) $52.50.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Figure: The Market for Music Downloads) Use Figure: The Market for Music Downloads.If the government imposes a tax of $3 in this market,the deadweight loss will equal:

A) $0.
B) $22.50.
C) $26.25.
D) $52.50.