Suppose a tax of $5 per unit is imposed on a good,and the tax causes the equilibrium quantity of the good to decrease from 200 units to 100 units.The tax decreases consumer surplus by $800 and decreases producer surplus by $700.The deadweight loss from the tax is
A) $500.
B) $1,000.
C) $1,500.
D) $2,000.
Correct Answer:
Verified
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