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When Both Supply and Demand Are Price Elastic, Taxes Tend

question 98

Multiple Choice

When both supply and demand are price elastic, taxes tend to create _____ deadweight loss and _____ tax revenue collected than when one or both curves are inelastic.


Definitions:

Designer Jeans

High-end jeans often made by or branded by leading fashion designers, characterized by unique designs, high-quality materials, and a higher price.

Transnational Corporations

Are large businesses with head offices in rich countries. They rely increasingly on foreign labour and foreign production; skills and advances in design, technology, and management; world markets; and massive advertising campaigns. They are increasingly autonomous from national governments.

Nation-states

Political entities consisting of a sovereign state whose citizens or subjects are relatively homogeneous in factors such as language or common descent.

Autonomous

The quality of having independence or self-governance, capable of making decisions or operating independently from external control.

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