Suppose the equilibrium price of potatoes is $5 per pound, but the government imposes a price ceiling
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Suppose the equilibrium price of potatoes is $5 per pound, but the government imposes a price ceiling of $2 per pound, creating a deadweight loss. True or False:
If the government imposes a sales tax of $1 per pound of potatoes (while continuing to maintain the price ceiling) then the deadweight loss will get even larger.
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