Figure 8-20 On the Vertical Axis of Each Graph, DWL Is Deadweight

question 415

Multiple Choice

Figure 8-20
On the vertical axis of each graph, DWL is deadweight loss.
-Refer to Figure 8-20. Which graph correctly illustrates the relationship between the size of a tax and the size of the deadweight loss associated with the tax?

• A) Panel a)
• B) Panel b)
• C) Panel c)
• D) Panel d)

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