ECON-2110 Chapter Notes -Deadweight Loss, Demand Curve, Equilibrium Point

A shortage of a good occurs when :
A) the quantity supplied equals the quantity, demanded
B) the quantity supplied is greater than quantity demanded
C) the quantity supplied is less than the quantity demanded
D ) supply does not exist
Who ultimately pays the tax depends on who writes the check to the government
TRUE OR FALSE
if a buyers pay $10 per unit and sellers receive $8.50 per unit the tax is 1.50 per unit TRUE OR FALSE

Suppose that demand is given by Q = 117 - 1P while supply is given by Q = 3(P-T) - 17. Where T is a commodity tax placed on sellers. If the government set T = 3.67, what will be the size of the deadweight loss?