deadweight loss because Select the correct answer below: the price consumers pay and producers receive is identical to the equilibrium price governments use this tax revenue to increase spending which creates an incentive for business governments force consumers to pay higher prices the market is no longer in equilibrium
deadweight loss because Select the correct answer below: the price consumers pay and producers receive is identical to the equilibrium price governments use this tax revenue to increase spending which creates an incentive for business governments force consumers to pay higher prices the market is no longer in equilibrium
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Answer is 10,786.8

Transcribed Image Text:Question
Although governments can collect tax revenue in the form of a per unit tax on output, this creates inefficiency known as
deadweight loss because
Select the correct answer below:
the price consumers pay and producers receive is identical to the equilibrium price
governments use this tax revenue to increase spending which creates an incentive for business to produce
governments force consumers to pay higher prices
the market is no longer in equilibrium
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