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    Principles of Economics Study Set 8
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    Exam 8: Applications: The Costs of Taxation
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    Suppose the Demand Curve and the Supply Curve in a Market
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Suppose the Demand Curve and the Supply Curve in a Market

Question 146

Question 146

Short Answer

Suppose the demand curve and the supply curve in a market are both linear. If a $2 tax per unit results in a deadweight loss of $200, how large would be the deadweight loss from a $3 tax per unit?

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