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

[deesands]

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.

[lin77x]

Answer to Question 1

A

Answer to Question 2

B

[deesands]

Thanks for the timely response, appreciate it

[LVPMS]

Excellent