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The diagram below shows the effect of a per-unit tax of 5 dollars on suppliers, where A represents the pre-tax equilibrium and B represents the after-tax equilibrium. P refers to price and Q refers to quantity. If the government imposed a proportional tax of 50%, then compared to the outcomes under the per-unit tax,

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The tax revenue under existing tax is , and this is the largest possible tax revenue in this market. So, under any other tax, the tax revenue will be smaller. You can find the tax revenue under the proportional tax to make sure that it is smaller than 10.

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