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If the government imposes a $100 tax on each airline ticket, which statements are true. A. The amount of consumer surplus that would be lost
If the government imposes a $100 tax on each airline ticket, which statements are true.
A. The amount of consumer surplus that would be lost from the tax will exceed the amount that the producer surplus would have lost from the tax.
B. If the tax is placed on the consumers, the amount of surplus that would be lost by the consumers will be the same value as if the tax is placed on the producers.
C. 100 fewer airline tickets will be sold
d. None of the above
I think it's D but just want a sanity check.
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