-In the figure above, suppose that the government imposes a tax of $4 per pizza. Then, the

Name: -In the figure above, suppose that the government imposes a tax of $4 per pizza. Then, the
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The shaded area is the deadweight loss from the tax because it represents the loss of consumer and producer surplus that results from the imposition of the tax. The buyers and sellers equally share the incidence of the tax because the tax is a per-unit tax, which means that it is paid by both buyers and sellers.

-In the Figure Above, Suppose That the Government Imposes a Tax