-In the above figure, the deadweight loss due to the tax is

Name: -In the above figure, the deadweight loss due to the tax is
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Question

Quizplus · Accepted Answer

The deadweight loss is the triangle formed by the tax wedge, which is the difference between the price paid by consumers and the price received by producers. In this case, the tax wedge is $2 per unit, and the quantity of goods sold is 1,000 units. Therefore, the deadweight loss is $1,000.

-In the Above Figure, the Deadweight Loss Due to the Tax