Suppose Tyler Values a Basketball at $20

question 158

Multiple Choice

Suppose Tyler values a basketball at $20. Jacqui values a basketball at $25. The pre-tax price of a basketball $10. The government imposes a tax of $5 on each basketball, and the price rises to $15. The deadweight loss from the tax is

• A)$25.
• B)$15.
• C)$10.
• D)$0.

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