4- Using Supply and Demand to Analyze Markets End of Chapter Problem

The U.S. Senate is considering a bill that would tax the sale of laptop computers in order to fund a computer education program. The Congressional Budget Office (CBO) estimates that if it implements a low tax of $12 per laptop, revenue should be sufficient to exactly fund the program. The CBO also estimates that a high tax of $230 per laptop will exactly fund the program.

If these two tax policies will exactly fund the program, which policy will be better for society?

A- The $12 tax, because there will be less deadweight loss.

B- The $230 tax, because the revenue would be gained over fewer units.

C- They will be equally efficient, because they will cost taxpayers the same amount.

D- The $230 tax, because producer will gain more surplus than they previously had.