Suppose the tax on liquor is increased

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Suppose the tax on liquor is increased so that the tax goes from being a "medium" tax to being a "large" tax. As a result, it is likely that:

a. tax revenue increases, and the deadweight loss increases.

b. tax revenue increases, and the deadweight loss decreases.

c. tax revenue decreases, and the deadweight loss increases.

d. tax revenue decreases, and the deadweight loss decreases.

Reference no: EM13853861

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