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Business, 17.06.2021 15:20 kps26pd2mea

In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government is able to raise $750 per month in tax revenue. We can conclude that the equilibrium quantity of widgets has fallen by $3. The government is able to raise $750 per month in revenue from the tax. The deadweight loss from the tax is:

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In the market for widgets, the supply curve is the typical upward-sloping straight line, and the dem...

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