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Which of the Following Events Is Consistent with an Increase

Question 29

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.

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