The Deadweight Loss of a Tax Is Larger If the Price

question 20

True/False

The deadweight loss of a tax is larger if the price elasticity of demand is higher.

---

Definitions:

Total Cost

The aggregate financial cost of all operating expenses and direct costs associated with the production of goods or services.

Total Benefit

The complete gain or satisfaction obtained from consuming a product or engaging in an activity, quantified by willingness to pay or perceived utility.

Construction Project

A comprehensive undertaking to build, erect, or assemble infrastructure or buildings, involving planning, design, and management.

Public Choice Theorists

Economists who apply the theories and methods of economics to the analysis of political behavior, focusing on the behavior of public officials and voters.