Deadweight Loss Is Minimized When a Tax Is Levied on a Good

question 159

Multiple Choice

Deadweight loss is minimized when a tax is levied on a good for which:

• A)a price change is unlikely to cause people to change their behavior.
• B)a price change is very likely to cause people to change their behavior.
• C)a large income elasticity of demand exists.
• D)a small income elasticity of demand exists.

---

Definitions:

Revisions

Changes or modifications made to a document or file over time.

Show Only Comments And Formatting In Balloons

A feature in word processing software that displays comments and format changes in the margins of the document for review.

Break The Link

An action to sever a connection or reference between two elements, often used in the context of hyperlinks or linked data sources.

Excel File

A file format used by Microsoft Excel, typically with extensions such as .xls or .xlsx, for organizing and managing data in spreadsheets.