Multiple Choice
Use the following to answer questions:
Figure: Consumer and Producer Surplus
-(Figure: Consumer and Producer Surplus) According to the figure, what would happen to the deadweight loss if the tax increased to $2 per basket of apples?
A) The new tax would minimize deadweight loss.
B) Deadweight loss does not change due to a change in the tax.
C) Deadweight loss will decrease due to a change in the tax.
D) Deadweight loss will increase.
Correct Answer:

Verified
Correct Answer:
Verified
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