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lectur20-page17 - Again we have an efficiency loss equal to...

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A) Wedge is inserted on the RIGHT HAND side of equilibrium. B) The result is too much production. C) Who actually pays the subsidy? Tax payers: consumers. D)
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Unformatted text preview: Again we have an efficiency loss equal to the shaded triangle. The value of the extra output is less than the value of the resources used to produce it....
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