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Managerial Economics · End Term · 31 Aug 2025 · May 2025 term · Set QDB3

Question 26: The loss in producer surplus due to incidence of tax is

Question 26

+0.5 marksOne correct option

The market demand curve for pizzas is P=300-Q and the market supply curve is P=60+2Q. A tax of t=15 INR is imposed on one unit of pizza sold. Answer the given subquestions.

The loss in producer surplus due to incidence of tax is

  1. A

    INR 565

  2. B

    INR 845

  3. C

    INR 775

  4. D

    INR 695

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Correct answer

  • C

    INR 775

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Question 26 of 43 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 31 Aug 2025, in the May 2025 term (IIT M IMPROVEMENT FN EXAM QIA1 31 Aug 2025). It carries 0.5 marks.

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