Calculate the deadweight loss associated with the tax

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Reference no: EM13692569

Quantity demanded: P=90-Q

Quantity Supplied: P=2Q

--> Suppose the government replaces the price ceiling with a tax of $3 on each unit produced.

1. Calculate the consumer surplus, producer surplus, and government’s tax revenue.

2. Calculate the deadweight loss associated with the tax

Reference no: EM13692569

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