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QUESTION

Eggs have a supply curve that is linear and upward-sloping and a demand curve that is linear and downward-sloping.

Eggs have a supply curve that is linear and upward-sloping and a demand curve that is linear and downward-sloping. If a 2 cent per egg tax is increased to 3 cents, the deadweight loss of the tax (please show working)

a increase by less than 50% and may decline

b increase by exactly 50%

c increase more than 50%

d the answer depend on the elastic of supply and demand cruve

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