Refer to Scenario 8-3. Suppose that a tax of T is placed on buyers so that the demand curve becomes:
$$Q^D=200-(P+T)$$ If T = 40, how much will be the deadweight loss from this tax?

Deadweight Loss

A reduction in economic effectiveness that happens when it's impossible to reach or the equilibrium result is not attained.

Demand Curve

A graph showing the relationship between the price of a good and the amount of that good consumers are willing to buy.

Tax

A binding monetary impost or other form of levy exacted upon a taxpayer by a governmental unit to finance the operation of the government and various public services expenses.