johnquitoJOHN8526 johnquitoJOHN8526
  • 19-12-2022
  • Business
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Suppose a tax of $0.10 per unit on a good creates a deadweight loss of $100. If the tax is increased to $0.25 per unit, the deadweight loss from the new tax would be
a. 200
b. 250
c. 475
d. 625
The answer is 625, but I would like to know how to get that number.

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