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    Modern Principles Microeconomics
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    Exam 6: Taxes and Subsidies
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    Use the Following to Answer Questions
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Use the Following to Answer Questions

Question 206

Question 206

Multiple Choice

Use the following to answer questions:
Figure: Demand and Supply with Subsidy Use the following to answer questions: Figure: Demand and Supply with Subsidy   -(Figure: Supply and Demand with Subsidy)  Refer to the figure. What is the deadweight loss caused by the subsidy? A)  $100 B)  $200 C)  $3,200 D)  $800
-(Figure: Supply and Demand with Subsidy) Refer to the figure. What is the deadweight loss caused by the subsidy?


A) $100
B) $200
C) $3,200
D) $800

Correct Answer:

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