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    Principles of Economics Study Set 8
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    Exam 8: Applications: The Costs of Taxation
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    If the Tax on a Good Is Increased from $1
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If the Tax on a Good Is Increased from $1

Question 133

Question 133

Multiple Choice

If the tax on a good is increased from $1 per unit to $4 per unit, the deadweight loss from the tax increases by a factor of


A) 5.
B) 9.
C) 16.
D) 24.

Correct Answer:

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