Question

Demand for face masks is characterized by the equation Pd=80-3Qd, while supply is characterized by Ps=10+2Qs....

Demand for face masks is characterized by the equation Pd=80-3Qd, while supply is characterized by Ps=10+2Qs. Price is in dollars and the quantity is in thousands. What would be the result of a tax of $15 per face mask?

A. Govt revenue of 81,250 and deadweight loss of 3,125.

B. Govt revenue of 22,500 and deadweight loss of 165,00.

C. Govt revenue of 165,00 and deadweight loss of 22,500.

D. Government revenue of 3,125 and deadweight loss of 81,250.

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