tax on a good has a deadweight loss if O the reduction in consumer and producer...

Question

Question

Answer 1

Answer #1

1)

Answer: ( A)

Tax would create the deadweight loss if the fall in the CS and PS is greater than the tax revenue collected.

2)

Answer: (b)

Consumer surplus will fall as the price has increased. but since quantity has not decreased, so dead weightloss will not be created over here.

Answer 2

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