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perfectly competitive equilibrium shown in the diagram, with Q* rides being provided for a per price of $5/ride. (This must be a market where everyone

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perfectly competitive equilibrium shown in the diagram, with Q* rides being provided for a per price of $5/ride. (This must be a market where everyone travels the same distance!) $/ride 5 D Rides Q* X Now suppose a sales tax of $0.50/ride is imposed on the market, requiring Uber drivers to collect the tax from riders and hand the tax revenues over to the government. Relative to the no-tax equilibrium shown in the diagram, this tax will cause everything except: the price paid by consumers to increase from $5/ride to $5.50/ride. O a decrease in consumer surplus. O a decrease in producer surplus. a deadweight loss. O a decrease in social welfare

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