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

question 162

Multiple Choice

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

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

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Definitions:

Effort

The use of physical or mental energy to achieve a goal or complete a task.

Three-Person Trip

an outing or journey undertaken by a group of three individuals together.

Gordon Allport

An influential American psychologist known for his extensive research in personality and the psychology of prejudice.

Attitudes

Global evaluations toward some object or issue