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The following graph shows the old and new equilibrium information and how the deadweight loss of a tax is the area of the triangle between

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The following graph shows the old and new equilibrium information and how the deadweight loss of a tax is the area of the triangle between the supply and demand curves: (?) Demand Supply Price 100 100-T/3 200-2T/3 200 Quantity Recall that the area of a triangle is 2 X Base x Height According to this graph, the base of the deadweight loss triangle is (2T ; 100 + 2T/3 ; 100 - T/3 ; T), and the height is (T ; 200 - 2T/3 ; 200 ; 2T/3)

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