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Suppose a tax is imposed resulting in a price that buyers pay PB and a price that sellers receive PS. Which of the following statements
Suppose a tax is imposed resulting in a price that buyers pay PB and a price that sellers receive PS. Which of the following statements is most correct? If, instead of the tax, a price ceiling was imposed at PB, the deadweight loss of the tax and the price ceiling would be identical, If. instead of the tax, a price floor was imposed at PS, the deadweight loss of the tax and the price floor would be identical. A price ceiling or a price floor is not capable of producing a deadweight loss identical to the one caused by the tax. If, instead of the tax, a price floor was imposed at PB, the deadweight loss of the tax and the price floor would be identical
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