(Answered) Suppose the demand for a product is given by p30

Economics

Suppose the demand for a product is given by P=30 - 2Q. Also, the supply is given by P= 5+3Q. If a $5 per unit excise tax is levied on the buyers of a good, the deadweight loss created by the tax will be:

A) $5

B) $16

C) $2.50

D) $4

E) None of these

Suppose the demand for a product is given by P=40-4Q. Also, the supply is given by P= 10+Q. If a $10 per unit excise tax is levied on the buyers of a good, the deadweight loss created by the tax will be:

A) $5

B) $16

C) $2.50

D) $4

E) None of these

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