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Suppose a Tax Is Imposed on Cameras

Question 73

Multiple Choice

Suppose a tax is imposed on cameras. The deadweight loss of the tax is:


A) those consumers who still choose to buy cameras, but pay a higher price that reflects the tax
B) those consumers who choose to not buy the camera after the tax raises the price
C) all citizens who are able to use services provided by government
D) those consumers who are unable to avoid paying the tax on cameras

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