How tax reduces the equilibrium quantity in the market
A tax of $10 per unit is imposed on a certain market. The tax reduces the equilibrium quantity in the market by 200 units. The deadweight loss from the tax is $1000. Why? Why not $2000?
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The tax reduces the equilibrium quantity in the market by 200 units. The deadweight loss from the tax is $1000. Why? Why not $2000?
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