Page (s) 165-166 5.3. Why do taxes create deadweight loss in otherwise efficient markets? How would the consumer notice if the government decided to levy a new $2 tax on potato chips?
(A) There would be no change in price and the consumer would not notice.
(B) Consumers would pay the same price for potato chips, but would notice the $2 tax at the register.
(C) The price of potato chips would rise.
(D) The government would tax individuals who bought too many potato chips.
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