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S + tax on seller Price (dollars per unit) 0 1 2 3 4 5 6 Quantity (thousands of units) 7) In the above figure, the amount of

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Answer #1

7) Amount of tax per unit = vertical distance between supply curves = 4 - 2 = $ 2

8) Deadweight loss = (Qeq - Qtax) x Tax / 2 = (3000 - 2000) x (4 - 2)/2 = 1000

9) B - Shift towards the origin on the apples axis only

10) C - change in total utility divided by the change in the quantity consumed.

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