please show work and explainNote:-Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote.Take care of plagiarism.Answer completely.You will get up vote for sure. P$14$12$10$8$6$4$2SMSBD2 4 6 8 10 12 14 QCalculate the increase in Gains from Trade from the optimal Pigovian tax. Hint: the gains from trade will increase bythe amount of Deadweight Loss eliminated.(Do not include a $ sing in your response. Round to the nearest two decimal places if necessary.)

The loss of economic efficiency that happens when a market's equilibrium is not at the point where…

Answered: P $14 $12 $10 $8 $6 $4 $2 2 4 S D- MSB…

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Economics

P $14 $12 $10 $8 $6 $4 $2 2 4 S D- MSB 6 8 10 12 10 12 14 Q

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter17: International Trade

Section: Chapter Questions

Problem 2.5P

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P
$14
$12
$10
$8
$6
$4
$2
S
MSB
D
2 4 6 8 10 12 14 Q
Calculate the increase in Gains from Trade from the optimal Pigovian tax. Hint: the gains from trade will increase by
the amount of Deadweight Loss eliminated.
(Do not include a $ sing in your response. Round to the nearest two decimal places if necessary.)

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