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A Tax of $10 Per Unit Is Imposed on a Certain

Question 77

Multiple Choice

A tax of $10 per unit is imposed on a certain good.The supply curve and the demand curve are straight lines.The tax reduces the equilibrium quantity in the market by 200 units.The deadweight loss from the tax is


A) $2,000.
B) $,1000.
C) $500.
D) $250.

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