Question
Consider a perfectly competitive market with market supply QS= -2+ P and market demand QD= 40 -P/2. Suppose the government imposes a tax of $6
Consider a perfectly competitive market with market supply QS= -2+ P and market demand QD= 40 -P/2.
Suppose the government imposes a tax of $6 per unit on this market. What is the deadweight loss caused by this tax a tax of $6 per unit on this market.
a. $0
b. $6
c. $12
d. $18
e. $32
which is the correct answer and why?
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Legal Environment
Authors: Jeffrey F Beatty, Susan S Samuelson
3rd Edition
0324537115, 9780324537116
