181.Supposeataxof$3isimposedoneachnewgardenhosethatissold,resultinginadeadweightlossof$22,500.Thesupplycurveisatypicalupward-slopingstraightline,andthedemandcurveisatypicaldownward-slopingstraightline.Beforethetaxwasimposed,theequilibriumquantityofgardenhoseswas100,000.Wecanconcludethattheequilibriumquantityofgardenhosesafterthetaxisimposedis a.75,000. b.85,000. c.90,000. d.95,000. 182.TomwalksBethany’sdogonceadayfor$50perweek.Bethanyvaluesthisserviceat$60perweek,whiletheopportunitycostofTom’stimeis$30perweek.Thegovernmentplacesataxof$35perweekondogwalkers.Beforethetax,whatisthetotalsurplus? a.$60 b.$50 c.$30 d.$25 183.TomwalksBethany’sdogonceadayfor$50perweek.Bethanyvaluesthisserviceat$60perweek,whiletheopportunitycostofTom’stimeis$30perweek.Thegovernmentplacesataxof$35perweekondogwalkers.Afterthetax,whatisthelossintotal surplus? a.$50 b.$30 c.$25 d.$0 184.TomwalksBethany’sdogonceadayfor$50perweek.Bethanyvaluesthisserviceat$60perweek,whiletheopportunitycostofTom’stimeis$30perweek.Thegovernmentplacesataxof$35perweekondogwalkers.Afterthetax,whatisthetotalsurplus? a.$50 b.$30 c.$25 d.$0 185.DianaisapersonaltrainerwhoseclientCharlespays$80perhour-longsession.Charlesvaluesthisserviceat$100perhour,whiletheopportunitycostofDiana’stimeis$75perhour.Thegovernmentplacesataxof$10perhouronpersonaltrainers.Beforethetax,whatisthetotalsurplus? a.$25 b.$20 c.$5 d.$0 186.KateisapersonaltrainerwhoseclientWilliampays$80perhour-longsession.Williamvaluesthisserviceat$100perhour,whiletheopportunitycostofKate’stimeis$75perhour.Thegovernmentplacesataxof$10perhouronpersonaltrainers.Afterthetax,whatislikelytohappeninthemarketforpersonaltraining? a.KateandWilliamwillagreetoanewpricesomewherebetween$85and$100. b.KateandWilliamwillagreetoanewpricesomewherebetween$70and$110. c.KatewillnolongerofferpersonaltrainingservicestoWilliambecauseshemustchargemorethan$100inordertocoverheropportunitycostsandpaythetax. d.Thepricewillremainat$80,andKatewillpaythe$10tax. 187.Atax a.lowersthepricebuyerspayandraisesthepricesellersreceive. b.raisesthepricebuyerspayandlowersthepricesellersreceive. c.placesawedgebetweenthepricebuyerspayandthepricesellersreceive. d.Bothb)andc)arecorrect. 188.SupposeRebeccaneedsadogsittersothatshecantraveltohersister’swedding.Rebeccavaluesdogsittingfortheweekendat$200.SusaniswillingtodogsitforRebeccasolongasshereceivesatleast$175.RebeccaandSusanagreeonapriceof$185.Supposethegovernmentimposesataxof$30ondogsitting.Whatisthedeadweightlossofthetax? a.themaximumvaluethatRebeccawouldpayfordogsitting b.the$30tax c.thelostbenefittoRebeccaandSusanbecauseafterthetax,SusanwillnotdogsitforRebecca d.thelostbenefittoRebeccaofbeingunabletohireadogsitterbecauseRebeccaistheonewhowouldpaythetax 189.SupposeRebeccaneedsadogsittersothatshecantraveltohersister’swedding.Rebeccavaluesdogsittingfortheweekendat$200.SusaniswillingtodogsitforRebeccasolongasshereceivesatleast$175.RebeccaandSusanagreeonapriceof$185.Supposethegovernmentimposesataxof$30ondogsitting.ThetaxhasmadeRebeccaandSusanworseoffbyatotalof a.$30. b.$25. c.$10. d.$5. 190.SupposeRebeccaneedsadogsittersothatshecantraveltohersister’swedding.Rebeccavaluesdogsittingfortheweekendat$200.SusaniswillingtodogsitforRebeccasolongasshereceivesatleast$150.RebeccaandSusanagreeonapriceof$175.Supposethegovernmentimposesataxof$10ondogsitting.ThetaxhasmadeRebeccaandSusanworseoffbyatotalof a.$50. b.$40. c.$20. d.$10. Figure8-9 TheverticaldistancebetweenpointsAandCrepresentsataxinthemarket.