# Suppose that the equilibrium quantity in the market for widgets has been 200 per month

Suppose that the equilibrium quantity in the market for widgets has been 200 per month. Then a tax of \$5 per widget is imposed on widgets. The price paid by buyers increases by \$2 and the after-tax price received by sellers falls by \$3. The government is able to raise \$750 per month in revenue from the tax. The deadweight loss from the tax is

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