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Use the following to answer question:
-(Figure: The Gasoline Market) Use Figure: The Gasoline Market.The pretax equilibrium price is $3,and the equilibrium quantity before tax is 20,000 gallons.An excise tax has been levied on each gallon of gasoline,shifting the supply curve upward.The deadweight loss from this tax is equal to:
Discount Rates
The interest rate used to discount future cash flows to their present values in order to evaluate investments or projects.
EAR
Effective Annual Rate, which is the interest rate on a loan or financial product restated from the nominal interest rate as an annual rate compounded annually.
APR
The annual interest rate applied to borrowing or generated from an investment.
Compounding
The process of accumulating interest in an investment over time to earn more interest.
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