Question
note: The vertical distance between points A and B represents a tax in the market. Total surplus after the tax is (hint: don't forget to
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note: The vertical distance between points A and B represents a tax in the market.
Total surplus after the tax is (hint: don't forget to count tax revenue. Under the tax, TS = CS + PS + Tax Revenue)
A. $7.5
B. $2.5
C. $9
D. $10.5
1 points
QUESTION 37
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Refer to the graph from the previous question. Under the tax, the deadweight loss is
A. $10.5
B. $7.5
C. $2.5
D. $9
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Mostly Harmless Econometrics An Empiricist's Companion
Authors: J D Angrist, Joshua D Angrist
1st Edition
0691120358, 9780691120355
