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With Linear Demand and Supply Curves in a Market,suppose a Tax

Question 30

Multiple Choice

With linear demand and supply curves in a market,suppose a tax of $0.20 per unit on a good creates a deadweight loss of $40.If the tax is increased to $0.50 per unit,the deadweight loss from the new tax will be


A) $200.
B) $250.
C) $475.
D) $625.

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