Author Question: In the figure above, the deadweight loss from the tariff is ________. A) 32 million B) 80 ... (Read 80 times)

deesands · **on:** Jun 29, 2018

In the figure above, the deadweight loss from the tariff is ________.

A) 32 million
B) 80 million
C) 16 million
D) zero

Question 2

The price elasticity of demand for gasoline is 0.40. If the price of gasoline rises by 20 percent, there will be

A) a decrease of more than 20 percent in the quantity of gasoline demanded.
B) an increase in the total revenue received from the sale of gasoline.
C) a loss of total revenue for gasoline producers, because at a higher price the quantity of gasoline demanded decreases.
D) no change in the quantity of gasoline sold because people need gasoline.