Now set up a Supply and Demand setting in which you keep increasing the size of the
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Question:
Now set up a Supply and Demand setting in which you keep increasing the size of the tax. Set up a standard S&D curve like #1 above with a simple tax, then double the tax. (It might be helpful to make a series of simple S&D curves with the tax getting larger in each one.) Double the tax again..... What happens to DWL? What happens to the amount of tax generated? CS? PS?
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