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Consider the tulip market in the Netherlands.The initial equilibrium is at P1=$0.50 and Q1=2000tulips. The government levies a $0.10 tax on producers of tulips. The

  1. Consider the tulip market in the Netherlands.The initial equilibrium is at P1=$0.50 and Q1=2000tulips. The government levies a $0.10 tax on producers of tulips. The new equilibrium is at P2=$0.55and Q2=1500.What is the deadweight loss associated to the tax?
  3. $25
  4. $50
  5. $250
  6. $500
  7. $2500

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