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Question
Gasoline and ethanol are substitute fuels. If the government increases taxes on gasoline, this will cause a(n) ________ in deadweight loss in the market for gasoline and a(n) ________.
a. decrease; increase in the price of ethanol
b. increase; decrease in demand for ethanol
c. increase; increase in the price of ethanol
d. decrease; increase in demand for ethanol
e. increase; decrease in the price of ethanol
Answer
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Related questions
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