Answer:
The answers are:
A) total output should increase
B) total output should decrease
C) total output should be kept the same
D) total output should be decreased
Explanation:
A) consumers are willing to pay a higher price; the quantity supplied should increase
B) if Marginal cost > Marginal benefit; the quantity supplied should decrease
C) if total surplus is at maximum; the equilibrium point between quantity demanded and quantity supplied will remain the same
D) if the quantity supplied exceeds the quantity demanded; to reach an equilibrium point, the quantity supplied should decrease to match the quantity demanded
Answer:
a. $25
Explanation:
According to the given situation, the computation of deadweight loss of the tax is shown below:-
Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50)
Or, Deadweight Loss = 1 ÷ 2 × ($50)
Or, Deadweight Loss = $25
Therefore the correct option is a. $25
We simply considered the above values so that the deadweight loss of the ta could come
