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Question 40 1 pts Refer to Figure 4-2. What is the Deadweight Loss of this tax? Figure 4-2 The equations represent the demand

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Option 3

$8000

========

Before tax equilibrium
Qd=Qs
50000-2000P=-10000+2000P
4000P=60000
P=15
Q=50000-2000*15=20000


after tax equilibrium is at
Qd(with tax)=Qs
50000-2000(P+T)=-10000+2000P
50000-2000P-8000=-10000+2000P
4000P=52000
P=13=after tax price for sellers

Q=50000-2000(13+4)

=16000

==============

deadweight loss =0.5*(change in quantity)*tax

=0.5*(20000-16000)*4

=8000

(0,25) 21 (0,21) Price (16 000, 17) DWL (20 000, 15) (16000, 13) demand Supply demand with tax (0,5) (42000, 0) 40000 45000 (

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