Consider a Perfectly Competitive Market with Market Supply $Q ^ {5 } = - 2 + P$

question 61

Multiple Choice

Consider a perfectly competitive market with market supply $Q ^ {5 } = - 2 + P$ and market demand $Q ^ { d } = 30 - P$ . Suppose the government imposes an excise tax of $4 per unit on this market. What is the deadweight loss from this tax?

• A) 2
• B) 4
• C) 6
• D) 8

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