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

question 136

Multiple Choice

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

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

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Definitions:

Mandamus

A judicial writ issued as a command to an inferior court or ordering a person to perform a public or statutory duty.

Decision Maker

An individual or group responsible for making judgments and choices in a given situation.

Negotiation

The process by which two or more parties aim to reach a mutually acceptable agreement.

Negotiator

A person skilled in discussion with the aim of reaching an agreement or compromise on behalf of a party in a dispute or negotiation.