Multiple Choice
Suppose Tyler values a basketball at $20. Jacqui values a basketball at $16. The pre-tax price of a basketball $15. The government imposes a tax of $2 on each basketball, and the price rises to $17. The deadweight loss from the tax is
A) $1.
B) $2.
C) $3.
D) $6.
Correct Answer:
Verified
Correct Answer:
Verified
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