If a Per-Unit Tax Is Imposed on Producers in a Market

question 76

Multiple Choice

If a per-unit tax is imposed on producers in a market that is in equilibrium,the more elastic demand is,the

• A) less likely the deadweight loss will be affected.
• B) smaller the deadweight loss.
• C) larger the deadweight loss to consumers.
• D) smaller the deadweight loss to producers.
• E) larger the deadweight loss.

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Definitions:

Potential Disadvantages

Possible negative outcomes or drawbacks that may arise from a particular action, decision, or situation.

Life Cycle

The sequence of stages or phases that an organism, product, or service goes through from its inception to its termination or death.

Stages

Distinct phases or steps within a process or lifecycle, each characterized by unique features, challenges, or goals.

Adjourning

The final phase in group development where the team completes its tasks and disbands, typically associated with project teams or temporary committees.