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Question 3 Consider a competitive [or frictionless} market with linear [straight line} supplv and demand. The market is distorted by the presence of a per-unit
Question 3 Consider a competitive [or frictionless} market with linear [straight line} supplv and demand. The market is distorted by the presence of a per-unit tax imposed on suppliers. Halving the size of this per-unit tax will 0 leave the deadvveight loss unchanged. reduce the deadweight loss to half of its previous size. 0 reduce the deadweight loss to one third of its previous size. 0 reduce the deadweight loss to one quarter of its previous size. 0 reduce the deadweight loss to one eighth of its previous size
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