Figure 8-4
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-4.The amount of deadweight loss as a result of the tax is

Question

Figure 8-4
The vertical distance between points A and B represents a tax in the market. 
-Refer to Figure 8-4.The amount of deadweight loss as a result of the tax is

Quizplus · Accepted Answer

The deadweight loss from a tax is calculated as the area of the triangle formed between the supply and demand curves, which is typically 0.5 * base * height. In this case, the base and height are given in the context of the problem, leading to a calculation of $210.

Figure 8-4 the Vertical Distance Between Points a and B Represents a Represents