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    Principles of Economics Study Set 3
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    Exam 8: Application: The Costs of Taxation
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    Figure 8-8 Suppose the Government Imposes a $10 Per Unit Tax on Tax
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Figure 8-8 Suppose the Government Imposes a $10 Per Unit Tax on Tax

Question 186

Question 186

Multiple Choice

Figure 8-8
Suppose the government imposes a $10 per unit tax on a good. Figure 8-8 Suppose the government imposes a $10 per unit tax on a good.   -Refer to Figure 8-8.One effect of the tax is to A)  reduce consumer surplus by $36. B)  reduce producer surplus by $24. C)  create a deadweight loss of $20. D)  All of the above are correct.
-Refer to Figure 8-8.One effect of the tax is to


A) reduce consumer surplus by $36.
B) reduce producer surplus by $24.
C) create a deadweight loss of $20.
D) All of the above are correct.

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