4 Identify the deadweight loss or excess burden triangles for consumers and producers when the fi rst
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4 Identify the deadweight loss or excess burden triangles for consumers and producers when the fi rst tax is imposed in Figure 14.2 . By how much do these triangles grow when the tax increases so that the shadow supply curve is S 2 ? What can you infer about the effects of steadily escalating tax rates on excess burden?
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