Question

Wilma values a decorative garden rock at $15, while Fred values it at $10. The price of a decorative garden rock is $9. If the government imposes a $2 tax per decorative garden rock and the price of the rock rises to $11, what part of the deadweight loss comes from Wilma, and what part comes from Fred?

Answer 1

he part of the of the dead weight loss for Wilma is= $2

while the part of the dead weight loss for Fred is = $1

Step-by-step explanation:

Wilma value for a decorative garden stock is = $15

Fred value is at =$10

which together is given as

Wilma garden stock + Fred garden stock value = 25$

Government Tax for the decorative garden= $2

Price of stock rises at =$11

Therefore,

The part of the of the dead weight loss for Wilma is= $2

while the part of the dead weight loss for Fred is = $1