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(Figure: Changing Tax Rates) the Figure Shows a Market in Equilibrium

Question 49

Multiple Choice

(Figure: Changing Tax Rates) The figure shows a market in equilibrium. The introduction of a tax would likely:
(Figure: Changing Tax Rates)  The figure shows a market in equilibrium. The introduction of a tax would likely:    A)  decrease tax revenue and decrease deadweight loss. B)  decrease tax revenue and increase deadweight loss. C)  increase tax revenue and decrease deadweight loss. D)  increase tax revenue and increase deadweight loss.


A) decrease tax revenue and decrease deadweight loss.
B) decrease tax revenue and increase deadweight loss.
C) increase tax revenue and decrease deadweight loss.
D) increase tax revenue and increase deadweight loss.

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