Assume that a $0.10/pound tax on apples raises $100 million in revenue but causes a $125 million loss of consumer and producer surplus.From this information,we know that the deadweight loss from the tax is
A) $225 million.
B) $100 million.
C) $125 million.
D) $25 million.
E) $1.25 million.
Correct Answer:
Verified
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