The Deadweight Loss from a Tax of $8 Per Unit

question 369

Multiple Choice

The deadweight loss from a tax of $8 per unit will be smallest in a market with

• A) elastic demand and elastic supply.
• B) elastic demand and inelastic supply.
• C) inelastic demand and elastic supply.
• D) inelastic demand and inelastic supply.

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Definitions:

Muscular Paralysis

The loss of muscle function in part of your body, typically resulting from damage to the nervous system.

Acetylcholine

A neurotransmitter in the nervous system that plays an important role in muscle activation and memory functions.

Neurotransmitter

A neurotransmitter is a chemical substance that transmits nerve impulses across a synapse from one neuron to another.

Serotonin

A neurotransmitter that plays a key role in mood regulation, appetite, sleep, and other functions of the body.