If the size of a tax is tripled,what would happen to the deadweight loss from the tax
A)It would double.
B)It would triple.
C)It would increase by a factor of six.
D)It would increase by a factor of nine.

Question

Quizplus · Accepted Answer

The deadweight loss from a tax increases with the square of the tax size, so tripling the tax size increases the deadweight loss by a factor of nine.

If the Size of a Tax Is Tripled,what Would Happen