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The Figure Below Shows the Demand and the Supply in a Market

Question 10

Multiple Choice

The figure below shows the demand and the supply in a market before and after a tax is imposed. The demand and the supply curves are straight lines.
The figure below shows the demand and the supply in a market before and after a tax is imposed. The demand and the supply curves are straight lines. -Refer to the figure above. What is the deadweight loss due to this tax? A) $500,000 B) $750,000 C) $1,000,000 D) Not enough information to compute the answer
-Refer to the figure above. What is the deadweight loss due to this tax?


A) $500,000
B) $750,000
C) $1,000,000
D) Not enough information to compute the answer

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