Calculate the amount of revenue this tax raises for Smalltown and the deadweight loss of the tax.

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Calculate the amount of revenue this tax raises for Smalltown and the deadweight loss of the tax. (Hint: The area of a triangle is 1⁄2 3 base 3 height.)

b. The mayor now doubles the tax to $20. The price rises to $116, and the number of rooms rented falls to

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Principles Of Microeconomics

ISBN: 9780538453042

6th Edition

Authors: N. Gregory Mankiw

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Question Posted: Nov 04, 2024 06:00 AM

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Calculate the amount of revenue this tax raises for Smalltown and the deadweight loss of the tax.

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Principles Of Microeconomics

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