Which of the Following Events Always Would Increase the Size

question 19

Multiple Choice

Which of the following events always would increase the size of the deadweight loss that arises from the tax on gasoline?

• A)The demand for gasoline becomes more inelastic.
• B)The slope of the supply curve for gasoline becomes steeper.
• C)The amount of the tax per gallon of gasoline increases.
• D)All of the above are correct.

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Definitions:

Privacy

The right of individuals to keep their personal affairs confidential and to decide how information about themselves is shared with others.

Inductive Discipline

Strategy to control children’s behavior that relies on reasoning and discussion.

Corporal Punishment

A form of physical discipline that involves the deliberate infliction of pain as retribution for an offense, or for the purpose of disciplining or reforming a wrongdoer.

Behavior

The visible reactions or behaviors of humans or animals.