Multiple Choice
Which of the following events is consistent with an increase in the deadweight loss of the gasoline tax from $30 million to $120 million?
A) The tax on gasoline increases from $0.30 per gallon to $0.45 per gallon.
B) The tax on gasoline increases from $0.30 per gallon to $0.60 per gallon.
C) The tax on gasoline increases from $0.25 per gallon to $0.45 per gallon.
D) The tax on gasoline increases from $0.25 per gallon to $1.00 per gallon.
Correct Answer:

Verified
Correct Answer:
Verified
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