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Suppose the demand for gasoline per household is perfectly inelastic at 20 gallons a month, while the supply is upward sloping. The government places an
Suppose the demand for gasoline per household is perfectly inelastic at 20 gallons a month, while the supply is upward sloping. The government places an excise tax on gasoline of 75 cents per gallon, to be paid by suppliers. How much deadweight loss per household per month will this tax create? a. Greater than $15
b. $15 c. Less than $15 but greater than $0
d. $0
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