(Hint: Looking sideways, the base of the deadweight loss triangle is T, and the height is the...

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(Hint: Looking sideways, the base of the deadweight loss triangle is T, and the height is the difference between the quantity sold with the tax and the quantity sold without the tax.)

e. The government now levies a tax of $200 per unit on this good. Is this a good policy? Why or why not? Can you propose a better policy?

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