pizza is 0.8 (Es = 0.8). If the government imposes a $4 per pizza excise tax on the production of pizza, then the price that
pizza is 0.8 (Es = 0.8). If the government imposes a $4 per pizza excise tax on the production of pizza, then the price that consumers pay will ______ and at the after-tax quantity, Qtax, ______ Group of answer choices increase by more $4; a deadweight loss results because at Qtax marginal benefit is less than marginal cost, i.e., MB(Qtax) < MC(Qtax). increase by more than $2 but less than $4; a deadweight loss results because at Qtax marginal benefit is greater than marginal cost, i.e., MB(Qtax) > MC(Qtax). decrease by more than $2 but less than $4; a deadweight loss results because at Qtax marginal benefit is less than marginal cost, i.e., MB(Qtax) < MC(Qtax). decrease by less than $2; a deadweight loss results because at Qtax marginal benefit is greater than marginal cost, i.e., MB(Qtax) > MC(Qtax). increase by less than $2; a deadweight loss results because at Qtax marginal benefit is greater than marginal cost, i.e., MB(Qtax) > MC(Qtax). increase by less than $2; a deadweight loss results because at Qtax marginal benefit is less than marginal cost, i.e., MB(Qtax) < MC(Qtax).
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