The market demand curve for caviar is given by: Q=400-4p. Further, assume that the market supply curve for caviar is given by: Q=100. Despite being accused of engaging in
class warfare on people who like to eat caviar, the government decides to raise revenue to fill a ‘budget blackhole’ by imposing a specific tax of 20 on caviar that must be paid by
buyers. The deadweight loss that results from this tax is equal to:
a. 0
b. 20
c.1250
d.2000
e.7500