Subtract.
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The loss in producer surplus as a result of the tax given the information in the diagram is $9000.
<h3>What is the loss in the producer surplus?</h3>Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
The dead weight loss of tax can be determined by calculating the reduction in total surplus as a result of the tax
Loss = (1/2 x 600 x 40) - (1/2 x 300 x 20)
12000 - 3000 = $9000
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