22 Jul WHAT HAPPENS TO THE DEAD WEIGHT LOSSES OF THE TARIFF FOLLOWING THE INCREASE IN DEMAND?
What is the total dome Show more Q1 http://i316.photobucket.com/albums/mm349/Schlaudraff/ECN1_zps06d8d251.png What is the total domestic resource cost of the added units of domestic production? a) $60 b) $12 c) $44 d) $6 e) $54 Q2 http://i316.photobucket.com/albums/mm349/Schlaudraff/ECN_zpsed7bebf9.png Figure 3 depicts a market with an existing $2 tariff that experiences growth in demand from Dd to Dd. What happens to the dead weight losses of the tariff following the increase in demand? a) The dollar amounts of both the production and consumption efficiency losses increase. b) The dollar amounts of both the production and consumption efficiency losses decrease. c) The dollar amount of the production efficiency loss increases while the dollar amount of the consumption efficiency loss stays the same. d) The dollar amount of the consumption efficiency loss increases while the dollar amount of the production efficiency loss stays the same. e) The dollar amount of both losses remain unchanged. Show less
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