lectur20-page15 - • It is a lost to society a welfare...

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A) Look at a $.50 excise tax. B) Area under the demand curve represents the value of the commodity to s o c i e t y . C) Area under the supply curve represents the value of the resources or the cost to society. D) What does the shaded triangle represent?
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Unformatted text preview: • It is a lost to society, a welfare loss, or an efficiency loss. • Why? We have saved resources by reducing production but the value of the output not produced is greater than the resources saved....
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