Given the Relationship Between the Price Elasticity of Demand and the Deadweight

question 150

Multiple Choice

Given the relationship between the price elasticity of demand and the deadweight loss of a per-unit tax,it is best to tax items that

• A) only the rich can afford.
• B) are expensive.
• C) have few substitutes.
• D) are luxuries.
• E) have many substitutes.

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