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Answer in Microeconomics for Nina #113053

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April 21st, 2023

A. The market produces the efficient quantity under each policy – it’s false, because any tax creates deadweight loss.

B. The deadweight loss from policy (2) is greater than from policy (1) – it’s true.

C. The government spends more on policy (1) than on policy (2) – it’s false, because the government will spend more on policy (2).

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