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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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
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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