Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s.

-Refer to the figure above.The deadweight cost of the tariff equals
A)$10,000.
B)$25,000.
C)$50,000.
D)cannot be calculated without further information.

Question

Answer the question(s)below based upon the following diagram.Note that Q is measured in 1,000s.
 
-Refer to the figure above.The deadweight cost of the tariff equals
A)$10,000. 
B)$25,000. 
C)$50,000. 
D)cannot be calculated without further information.

Quizplus · Accepted Answer

The deadweight cost of the tariff is the area of the triangle between the supply and demand curves, which can be calculated as (1/2) x (40-20) x (10,000-5,000) = $25,000.

Answer the Question(s)below Based Upon the Following Diagram