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Question 196

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Figure: Consumer and Producer Surplus 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.
-(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.

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