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Business, 19.12.2019 02:31 peytenyoung

Suppose a tax of $5 per unit is imposed on a good. the supply curve is a typical upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. the tax decreases consumer surplus by $10,000 and decreases producer surplus by $15,000. the deadweight loss of the tax is $2,500. the tax decreased the equilibrium quantity of the good from a. 6,500 to 5,500. b. 5,500 to 4,500. c. 5,000 to 3,000. d. 6,000 to 4,000.

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