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Figure 8-2 The vertical distance between points A and B represents a tax in the market. A graph of price, P, versus quantity, Q, shows

Figure 8-2 The vertical distance between points A and B represents a tax in the market. A graph of price, P, versus quantity, Q, shows a supply curve, S, rising linearly from point (0, 2) to (4, 10), and a demand curve, descending linearly from point (0, 12) to (4, 0). The curves intersect at (2, 6). Point A lies on the demand curve at point (1, 9). Point B lies on the supply curve at point (1, 4). Refer to Figure 8-2. The amount of deadweight loss as a result of the tax is a. $5. b. $7.50. c. $10. d. $2.50

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