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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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    Taxes Cause Deadweight Losses Because They Prevent Buyers and Sellers
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Taxes Cause Deadweight Losses Because They Prevent Buyers and Sellers

Question 37

Question 37

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Taxes cause deadweight losses because they prevent buyers and sellers from realizing some of the gains from trade.

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