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If a Tax Is Placed on Tires,then

Question 15

Multiple Choice

If a tax is placed on tires,then
i.the equilibrium quantity of tires will decrease.
ii.a deadweight loss will be created.
iii.the producer surplus will decrease.


A) i only
B) ii only
C) i and iii
D) i and ii
E) i, ii, and iii

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