Multiple Choice
An excise tax imposed on junk food reduces consumer surplus by $50,producer surplus by $80,and results in tax revenue of $40 for the government.What is the welfare effect of this tax?
A) A net loss of $10
B) A net gain of $40
C) A net loss of $90
D) A net loss of $130
Correct Answer:
Verified
Correct Answer:
Verified
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