Answer:
Explanation:
The deadweight loss of the tax is :
According to the given situation, the computation of deadweight loss of the tax is shown below:-
Deadweight Loss = 1 ÷ 2 × 1 × ($350 - $300) = 1 ÷ 2 × ($50)
Deadweight Loss = 1 ÷ 2 × ($50)
Deadweight Loss = $25
The deadweight loss of the tax is $25.
Thus, the correct answer is 25$.
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