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Figure 8-8 Suppose the Government Imposes a $10 Per Unit Tax on Tax

Question 230

Multiple Choice

Figure 8-8
Suppose the government imposes a $10 per unit tax on a good. Figure 8-8 Suppose the government imposes a $10 per unit tax on a good. -Refer to Figure 8-8.One effect of the tax is to A) reduce consumer surplus from $60 to $24. B) reduce producer surplus from $32 to $8. C) create a deadweight loss of $24. D) All of the above are correct.
-Refer to Figure 8-8.One effect of the tax is to

A) reduce consumer surplus from $60 to $24.
B) reduce producer surplus from $32 to $8.
C) create a deadweight loss of $24.
D) All of the above are correct.

Correct Answer: