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.