When Evaluating the Size of the Deadweight Loss Due to a Tax,what

question 195

Multiple Choice

When evaluating the size of the deadweight loss due to a tax,what do we know

• A)the greater the elasticities of supply and demand, the greater the deadweight loss
• B)the smaller the elasticities of supply and demand, the greater the deadweight loss
• C)the smaller the decrease in both quantity demanded and quantity supplied, the greater the deadweight loss
• D)the greater the elasticities of supply and demand, the smaller the deadweight loss

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