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ssume that for good X the supply curve for a good is a typical, upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. If the good is taxed, and the tax is tripled, the O base of the triangle that represents the deadweight loss triples. O height of the triangle that represents the deadweight loss triples. O All of the above are correct. O deadweight loss of the tax increases by a factor of nine.

ssume that for good X the supply curve for a good is a typical, upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. If the good is taxed, and the tax is tripled, the O base of the triangle that represents the deadweight loss triples. O height of the triangle that represents the deadweight loss triples. O All of the above are correct. O deadweight loss of the tax increases by a factor of nine.

Principles of Macroeconomics (MindTap Course List)
Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781305971509
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Costs Of Taxation
Section: Chapter Questions
Problem 3CQQ
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Question 20 Assume that for good X the supply curve for a good is a typical, upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. If the good is taxed, and the tax is tripled, the O base of the triangle that represents the deadweight loss triples. O height of the triangle that represents the deadweight loss triples. O All of the above are correct. O deadweight loss of the tax increases by a factor of nine.
Transcribed Image Text:Question 20 Assume that for good X the supply curve for a good is a typical, upward-sloping straight line, and the demand curve is a typical downward-sloping straight line. If the good is taxed, and the tax is tripled, the O base of the triangle that represents the deadweight loss triples. O height of the triangle that represents the deadweight loss triples. O All of the above are correct. O deadweight loss of the tax increases by a factor of nine.
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