After the imposition of a specific tax, it is estimated that:

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Study for the University of Central Florida ECO2023 Principles of Microeconomics Final. Prepare with multiple choice questions, flashcards with helpful hints and explanations. Ace your exam!

When a specific tax is imposed on a good or service, tax revenues are generated based on the quantity sold at the new equilibrium price. The statement that tax revenues will amount to $1800 indicates that the tax has created a direct flow of funds from consumers and producers through the government as tax collections.

In addition, the mention of a deadweight loss of $100 signifies that the tax has created inefficiencies in the market, reducing the total welfare that would have been achieved in a tax-free scenario. Deadweight loss occurs because the tax usually distorts the behavior of buyers and sellers. It leads to a reduction in the quantity traded in the market compared to a situation without the tax, resulting in lost gains from trade.

Overall, this choice accurately reflects key concepts in microeconomics regarding how taxes affect markets, market efficiency, and overall economic welfare. The integration of tax revenues alongside deadweight loss also demonstrates an understanding of how taxation can have both a revenue-generating aspect and a cost in terms of lost economic efficiency.