Taxes and Deadweight Loss Practice

Slide a per-unit tax onto a market and watch the wedge open between the price buyers pay and the price sellers keep. Then answer five exam-style questions on who bears the tax, how much revenue it raises, and why the deadweight loss grows with the square of the tax.

One tile of the full efficiency and welfare unit.

The course teaches efficiency and welfare interactively — drag the graphs, practice with feedback, and spaced reviews bring it back before you forget. Free.

Interactive graph

Drag the tax slider. The blue rectangle is government revenue; the red triangle is the surplus nobody gets — the deadweight loss.

Loading interactive...

Five practice questions

Pick an answer, then click Check answer to see the explanation.

Question 1 of 5

A $6 per-unit tax is levied on sellers. After the market adjusts, the price buyers pay has risen by $4 and the price sellers keep has fallen by $2. Which statement is correct?

Question 2 of 5

Which factors determine the size of the deadweight loss created by a per-unit tax?

Question 3 of 5

Demand is P = 50 − Q and supply is P = 10 + Q, so the untaxed equilibrium is Q = 20 at P = 30. The government imposes a $10 per-unit tax. What is the deadweight loss?

Question 4 of 5

If the government doubles a per-unit tax on a good with linear demand and supply curves, what happens to the deadweight loss?

Question 5 of 5

Demand for a life-saving medicine is perfectly inelastic. If a per-unit tax is placed on the medicine, what happens?

What the course adds

Beyond this one page

The efficiency-and-welfare unit has dozens of practice questions on consumer and producer surplus, tax incidence, subsidies, and deadweight loss. Each session pulls from your weak spots — not the same five questions every time.

Spaced reviews

FSRS brings every concept back right before you'd forget. ~50% better retention than re-reading.

Per-concept mastery

Performance Factor Analysis tracks each sub-skill separately — you see which version of the idea is still wobbly.

Diagnostic placement

A short test skips you past what you already know. No re-learning the basics.

For instructors

Assign this to your class

Free, no account needed for students. Paste either snippet into Canvas, Moodle, Blackboard, Google Classroom, or your slide deck.

Sends students to the full page with the worked example and related lessons.

Inlines just the interactive widget in your LMS — no nav, no footer, no signup wall.

Want 50+ more problems with instant feedback?

The full Econ Academy efficiency-and-welfare unit includes adaptive practice, spaced repetition, and mastery tracking so you stop forgetting what you just learned.

Related