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    Exam 8: Welfare Economics and the Gains From Trade
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    Tax Problem
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Tax Problem

Question 73

Question 73

Multiple Choice

Tax Problem. Consider a perfectly competitive market were demand is Q = 100 - P and Supply is
Q = P - 10.

-Refer to Tax Problem.The deadweight loss due to a $10 per unit consumption tax is


A) zero.
B) $10.
C) $25.
D) $50.

Correct Answer:

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