The Deadweight Loss from a Tax of $8 Per Unit

question 369

Multiple Choice

The deadweight loss from a tax of $8 per unit will be smallest in a market with

• A) elastic demand and elastic supply.
• B) elastic demand and inelastic supply.
• C) inelastic demand and elastic supply.
• D) inelastic demand and inelastic supply.

---

Definitions:

Repayment

The act of paying back money that was borrowed, often including the principal amount plus any accrued interest.

Interest

The feeling of wanting to learn more about something or to be involved in something.

Selling Stock

The act of selling shares of ownership in a corporation to raise funds or reduce investment in that corporation.

Government Organizations

Public sector agencies or entities that operate at federal, state, or local levels to administer and implement policies and services.