In the Long Run,both Supply and Demand Tend to Become

question 13

Multiple Choice

In the long run,both supply and demand tend to become more elastic.This suggests that,in the long run,the

• A) deadweight loss from a tax will be less than it is in the short run.
• B) deadweight loss will be zero.
• C) government will likely reduce tax rates.
• D) tax revenue will be lower than it is in the short run.
• E) tax revenue will be higher than it is in the short run.

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Definitions:

Reaction

A process in which substances interact, typically involving bond formation or breakage, resulting in the transformation into different substances.

Ethylene Oxide

A highly reactive, flammable gas used primarily to produce ethylene glycol and as a sterilant for medical equipment and supplies.

N-pentyllithium

A lithium organic compound used as a strong base and nucleophile in organic synthesis, with a pentyl group attached to lithium.

Aqueous Acid

An acid that is dissolved in water, where it dissociates to some extent into hydrogen ions and anions.