Eggs have a supply curve that is linear and upwardslopingand a demand curve that is linear anddownwardsloping. If a 2 cent per egg tax is increasedto 3 cents, the deadweight loss of the taxa. increases by less than 50 percent and may evendecline.b. increases by exactly 50 percent.c. increases by more than 50 percent.d. The answer depends on whether supply ordemandis more elastic.

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