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Question
Assume that a $0.25/gallon tax on milk causes a loss of $250 million in consumer and producer surplus and creates a deadweight loss of $45 million. From this information, we know that the tax revenue from the tax is
a. $250 million.
b. $45 million.
c. $205 million.
d. $295 million.
e. $75 million.
Answer
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Related questions
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