Question
2. What happens to the amount of deadweight loss as a tax increases? Explain and use
supply/demand diagrams to defend your answer.
3. If given the option to reduce pollution using regulation (equal reduction by each firm) or
tradeable permits (between low and high-cost firms), which would an economist choos
Explain.
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2. What happens to the amount of deadweight loss as a tax increases? Explain and use supply/demand diagrams to defend your answer. 3. If given the option to reduce pollution using regulation (equal reduction by each firm) or tradeable permits (between low and high-cost firms), which would an economist choos Explain.

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