Use the following to answer question:
-(Figure: A Market with a Tax)Use Figure: A Market with a Tax.The efficiency loss resulting from this tax is:

Question

Use the following to answer question: 
-(Figure: A Market with a Tax)Use Figure: A Market with a Tax.The efficiency loss resulting from this tax is:

Quizplus · Accepted Answer

The efficiency loss (deadweight loss) from a tax is represented by the area of a triangle, which is calculated as 0.5 * base * height. The base is the difference in quantity (Q₂ - Q₁), and the height is the difference in price before and after the tax (P₁ - P₃).

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