With Linear Demand and Supply Curves in a Market,suppose a Tax

question 30

Multiple Choice

With linear demand and supply curves in a market,suppose a tax of $0.20 per unit on a good creates a deadweight loss of $40.If the tax is increased to $0.50 per unit,the deadweight loss from the new tax will be

• A)$200.
• B)$250.
• C)$475.
• D)$625.

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