Figure 8-3

-Refer to Figure 8-3.What is the amount of deadweight loss as a result of the tax
A)$210
B)$420
C)$560
D)$980

Name: Figure 8-3 -Refer to Figure 8-3.What is the amount of deadweight loss as a result of the tax A)$210 B)$420 C)$560 D)$980
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Question

Figure 8-3
 
-Refer to Figure 8-3.What is the amount of deadweight loss as a result of the tax
A)$210 
B)$420 
C)$560 
D)$980

Quizplus · Accepted Answer

The deadweight loss is the triangle formed by the tax wedge, which is the difference between the price paid by consumers and the price received by producers. In this case, the tax wedge is $210, so the deadweight loss is also $210.

Figure 8-3 -Refer to Figure 8-3.What Is the Amount of Deadweight Loss