Determine the deadweight loss created by the imposition


Determine a market with a supply curve of P=Q and a demand curve of P=10-Q. Before the imposition of a tax, the equilibrium price is $5 and the equilibrium quantity is 5. If a tax of $5 per unit is placed on this market, the quantity traded falls to 2.5 units. Determine the deadweight loss created by the imposition of this tax?

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Macroeconomics: Determine the deadweight loss created by the imposition
Reference No:- TGS0872174

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