Suppose the Supply Curve Becomes More Inelastic, but Nothing Else

question 71

True/False

Suppose the supply curve becomes more inelastic, but nothing else changes.This implies that the deadweight loss of a tax will be smaller.

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Definitions:

Price

The amount of money exchanged for a unit of a good or service.

Short Run

This refers to a period in which at least one input or resource is fixed, while others can be varied to adjust output.

Minimizing Losses

A strategy or approach adopted by businesses or individuals aiming to reduce the amount of money lost in operations or investments.

Output

The total quantity of goods or services produced by a company, industry, or economic system.