The Deadweight Loss of a Specific Tax Will Be a Small

question 152

Multiple Choice

The deadweight loss of a specific tax will be a small share of the tax revenue collected if:

• A) supply is more inelastic than demand.
• B) demand is more inelastic than supply.
• C) supply and demand are both elastic.
• D) supply and demand are both inelastic.

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Definitions:

Consolidated Equipment

Assets combined from separate entities under a single owner, often seen in financial statements.

Outstanding Stock

Shares of a company's stock that have been issued and are currently held by investors, excluding shares held by the company itself.

Building

A structure with a roof and walls, such as a house or factory, constructed as a place of business, residence, or for other uses.

Cash

Liquid assets held by a company or individual, used for transactions or as a reserve for future payments.