The figure above shows the market for MP3 players, where S is the supply curve and D is the demand curve before any tax is imposed. The government imposes a $10 per unit tax on sellers of MP3 players.
-Based on the figure above,the deadweight loss from the tax is

Question

Quizplus · Accepted Answer

The deadweight loss from a tax is the loss in total surplus that occurs because the tax discourages mutually beneficial trades. Based on the figure, the deadweight loss is calculated as the area of the triangle formed between the supply and demand curves at the quantity traded after the tax is imposed. The correct calculation leads to a deadweight loss of $15,000 per week.

The Figure Above Shows the Market for MP3 Players, Where