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
Aincreases by less than 50 percent and may even?decline.
Bincreases by exactly 50 percent.
Cincreases by more than 50 percent.
Dthe answer depends on whether supply or?demand is more elastic.
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