Market of Good

Consider the market of good A. The equilibrium price was P = 20. Then, the government levied a per-unit tax of 5 on A. In the after-tax equilibrium, the deadweight loss was 10 and the buyer’s tax incidence was 1. Then, the government changed the tax; now, the government levied a per-unit tax of a certain size on A, and the seller’s tax incidence was 3 in the equilibrium with this new tax.Choose correct math symbols for the size of the new tax and the deadweight loss in the equilibrium with the new tax.Size of new-tax ( < , = , > ) 5 Dead weight loss (< , = , > ) 10

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Price (USD)
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