Which of the Following Situations Will Result in the Greatest

question 66

Multiple Choice

Which of the following situations will result in the greatest deadweight loss due to a per-unit tax on a good?

• A)Supply and demand are both relatively price-inelastic.
• B)Supply is relatively price-inelastic and demand is relatively price-elastic.
• C)Supply and demand are both relatively price-elastic.
• D)Supply is relatively price-elastic and demand is relatively price-inelastic.
• E)Both supply and demand do not exist.