Figure 8-5 ​

question 81

Multiple Choice

Figure 8-5
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-Refer to Figure 8-5. Graph (a) and Graph (b) each illustrate a $4 tax placed on a market. In comparison to Graph (a) , Graph (b) illustrates which of the following statements?

• A)When demand is relatively inelastic, the deadweight loss of a tax is smaller than when demand is relatively elastic.
• B)When demand is relatively elastic, the deadweight loss of a tax is larger than when demand is relatively inelastic.
• C)When supply is relatively inelastic, the deadweight loss of a tax is smaller than when supply is relatively elastic.
• D)When supply is relatively elastic, the deadweight loss of a tax is larger than when supply is relatively inelastic.

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Definitions:

Physical Devices

Tangible pieces of hardware that are used for specific functions, often within technological or manufacturing settings.

Inventory Turnover

The relationship between the volume of goods sold and inventory, computed by dividing the cost of goods sold by the average inventory.

Purchase Order

An official document issued by a buyer committing to pay the seller for the supply of specific products or services at agreed prices.

Approved Vendor

A supplier that has been vetted and authorized by a company to provide goods or services.