Figure: A Market with a Tax
(Figure: A Market with a Tax) Look at the figure A Market with a Tax.The efficiency loss resulting from this tax is:
A.(P₁ - P₃)Q₂.
B.(P₁ - P₂)Q₁
C.1/2(P₁ - P₃)(Q₂ - Q₁).
D.1/2(P₁ - P₃)Q₁.

Question

Quizplus · Accepted Answer

The Answer of Figure: A Market with a Tax
(Figure: A Market with a Tax) Look at the figure A Market with a Tax.The efficiency loss resulting from this tax is:
A.(P₁ - P₃)Q₂.
B.(P₁ - P₂)Q₁
C.1/2(P₁ - P₃)(Q₂ - Q₁).
D.1/2(P₁ - P₃)Q₁.

Figure: a Market with a Tax