The Price Elasticities of Supply and Demand Affect

question 30

Multiple Choice

The price elasticities of supply and demand affect

• A)both the size of the deadweight loss from a tax and the tax incidence.
• B)the size of the deadweight loss from a tax but not the tax incidence.
• C)the tax incidence but not the size of the deadweight loss from a tax.
• D)neither the size of the deadweight loss from a tax nor the tax incidence.

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Definitions:

Political Realignment

A significant change in political behavior that results in a new set of party alliances, often due to major events or shifts in societal norms.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, steep declines in industrial production, and widespread poverty.

Turbulent 1960s

A period marked by major social and political upheaval in the United States and globally, including civil rights movements, anti-war protests, and significant cultural shifts.

Proportional Representation

An electoral system in which parties gain seats in proportion to the number of votes cast for them.