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In the Figure, S Is the Before-Tax Supply Curve and Sₜ

Question 30

Multiple Choice

In the figure, S is the before-tax supply curve and Sₜ is the supply curve after an excise tax is imposed. The efficiency loss of this tax will be area A) ABCE. B) ABCE + ECF. C) 0 AEG. D) ECF. In the figure, S is the before-tax supply curve and Sₜ is the supply curve after an excise tax is imposed. The efficiency loss of this tax will be area


A) ABCE.
B) ABCE + ECF.
C) 0 AEG.
D) ECF.

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