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Question 21

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Use the following to answer questions:
Figure: Soda Market Use the following to answer questions: Figure: Soda Market -(Figure: Soda Market) Suppose the U.S. Congress passes a tax of $0.70 on each can of soda. Using the diagram and the wedge shortcut, determine how much deadweight loss this would create. A) $10,500 B) $21,000 C) $35,000 D) $70,000
-(Figure: Soda Market) Suppose the U.S. Congress passes a tax of $0.70 on each can of soda. Using the diagram and the "wedge shortcut," determine how much deadweight loss this would create.


A) $10,500
B) $21,000
C) $35,000
D) $70,000

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