Multiple Choice
Figure 8-10
![Figure 8-10 -Refer to Figure 8-10.Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2.The deadweight loss of the tax is A) [ x (P0-P5) x Q5] + [ x (P5-0) x Q5]. B) [ x (P0-P2) x Q2] +[(P2-P8) x Q2] + [ x (P8-0) x Q2]. C) (P2-P8) x Q2. D) x (P2-P8) x (Q5-Q2) .](https://d2lvgg3v3hfg70.cloudfront.net/TB2185/11ea33e9_381d_ba09_ac7d_970eb44cd4df_TB2185_00_TB2185_00_TB2185_00_TB2185_00_TB2185_00_TB2185_00_TB2185_00_TB2185_00_TB2185_00_TB2185_00_TB2185_00.jpg)
-Refer to Figure 8-10.Suppose the government imposes a tax that reduces the quantity sold in the market after the tax to Q2.The deadweight loss of the tax is
A) [
x (P0-P5) x Q5] + [
x (P5-0) x Q5].
B) [
x (P0-P2) x Q2] +[(P2-P8) x Q2] + [
x (P8-0) x Q2].
C) (P2-P8) x Q2.
D)
x (P2-P8) x (Q5-Q2) .
Correct Answer:
Verified
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