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dead weight loss supply demand Suppose demand and supply of gasoline are given by the following linear functions: Qd = 100 - 20P Qs =

dead weight loss supply demand

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Suppose demand and supply of gasoline are given by the following linear functions: Qd = 100 - 20P Qs = 50 + 10P where Q is the quantity in millions of litres and P is the price per litre. Suppose a tax of $1.10 per litre is imposed on gasoline. The deadweight loss equals: O A. $2.70 million O B. $3.33 million O C. $2. 13 million O D. $4.03 million

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