Direct from text Week 81. Multiple Choice Q1A tax on a good has a deadweight loss ifthe reduction in consumer and producer surplus is greater than the tax revenue.the tax revenue is greater than the reduction in consumer and producer surplus.the reduction in consumer surplus is greater than the reduction in producer surplus.the reduction in producer surplus is greater than the reduction in consumer surplus.
2. Multiple Choice Q2Jane pays Chuck $50 to mow her lawn every week. When the government levies a mowing tax of $10 on Chuck, he raises his price to $60. Jane continues to hire him at the higher price.What is the change in producer surplus, change in consumer surplus, and deadweight loss?
3. Multiple Choice Q3Eggs have a supply curve that is linear and upward-sloping and a demand curve that is linear anddownward-sloping.If a 2 cent per egg tax is increased to 3 cents, the deadweight loss of the tax