Jane pays Chuck $50 to mow her lawn every week. When the government levies a mowing tax
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Jane pays Chuck $50 to mow her lawn every week.
When the government levies a mowing tax of $10 on Chuck, he raises his price to $60. Jane continues to hire him at the higher price. What is the change in producer surplus, change in consumer surplus, and deadweight loss?
a. $0, $0, $10
b. $0, −$10, $0
c. +$10, −$10, $10
d. +$10, −$10, $0
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