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For Widgets, the Supply Curve Is the Typical Upward-Sloping Straight

Question 129

Multiple Choice

For widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. A tax of $15 per unit is imposed on widgets. The tax reduces the equilibrium quantity in the market by 250 units. The deadweight loss from the tax is


A) $3,750.
B) $1,875.
C) $132.5.
D) $117.5.

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