Question: The vertical distance between points A and B represents a tax in the market. A Supply NWAGONODGEN PRICE Demand 0.5 1.0 1.5 2.0 2.5 3.0

The vertical distance between points A and B represents a tax in the market. A Supply NWAGONODGEN PRICE Demand 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 QUANTITY Refer to Figure 8-2. The amount of deadweight loss as a result of the tax is O a. $10. O b. $2.50. O C. $5. O d. $7.50

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