Calculate the deadweight loss of a tax

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Reference no: EM131200116

The market demand for super-sticky glue is Q = 240 - 6P and the market supply is Q = 2 60 - 4P.

a. Calculate the deadweight loss of a tax of $4 per unit levied on producers of super-sticky glue.

b. How does deadweight loss change if the tax is levied on consumers of super-sticky glue?

Reference no: EM131200116

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