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For Widgets,the Supply Curve Is the Typical Upward-Sloping Straight Line,and

Question 164

Multiple Choice

For widgets,the supply curve is the typical upward-sloping straight line,and the demand curve is the typical downward-sloping straight line.A tax of $15 per unit is imposed on widgets.The tax reduces the equilibrium quantity in the market by 300 units.The deadweight loss from the tax is


A) $1,750.
B) $2,250.
C) $3,000.
D) $4,500.

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