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Suppose the Government Has Imposed a $6 Per Unit Tax

Question 74

Multiple Choice

Suppose the government has imposed a $6 per unit tax in the market shown in the graph. Suppose the government has imposed a $6 per unit tax in the market shown in the graph.   If the government raises the tax to $10 per unit:tax revenue will increase by $30,000.deadweight loss will increase by $16,000the quantity purchased will decrease by 2,000 units. A) I only B) II and III only C) I and III only D) I, II, and III If the government raises the tax to $10 per unit:tax revenue will increase by $30,000.deadweight loss will increase by $16,000the quantity purchased will decrease by 2,000 units.


A) I only
B) II and III only
C) I and III only
D) I, II, and III

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