Market A Market B P(dollars) P (dollars) D Q (units) Q (units) 5,000 5,000 If the government places a tax of $0.50/unit in each market, which market will have the most deadweight loss? Market A Market B Not enough information

Market A Market B P(dollars) P (dollars) D Q (units) Q (units) 5,000 5,000 If the government places a tax of $0.50/unit in each market, which market will have the most deadweight loss? Market A Market B Not enough information

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

Market A
Market B
P (dollars)
P (dollars)
D
Q (units)
Q (units)
5,000
5.000
If the government places a tax of $0.50/unit in each market, which market will have
the most deadweight loss?
Market A
O Market B
O Not enough information

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