Figure 9-6
The figure illustrates the market for roses in a country.
-Refer to Figure 9-6.The amount of deadweight loss caused by the tariff equals
A)$100.
B)$200.
C)$400.
D)$500.

Question

Figure 9-6
The figure illustrates the market for roses in a country. 
-Refer to Figure 9-6.The amount of deadweight loss caused by the tariff equals
A)$100. 
B)$200. 
C)$400. 
D)$500.

Quizplus · Accepted Answer

The deadweight loss is the triangle formed by the difference between the price with the tariff and the price without the tariff, and the difference between the quantity demanded with the tariff and the quantity demanded without the tariff. In this case, the deadweight loss is $100.

Figure 9-6 The Figure Illustrates the Market for Roses in a Country