Sammy has a drone that he values at $1,500. Dean values the same drone at $2,000. Sammy decides to sell the drone to Dean for $1,800. If the government imposes a $350 tax on the sale of drones,
A) Sammy and Dean would not be able to complete the transaction.
B) Sammy and Dean would still be able to complete the transaction.
C) the tax would cause a deadweight loss of $500.
D) Both A and C are correct.
D
Economics
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