If the Government Wanted to Raise Taxes While Generating the Least

question 39

Multiple Choice

If the government wanted to raise taxes while generating the least amount of deadweight loss,it should raise taxes on a good with a:

• A) very elastic demand.
• B) very elastic supply.
• C) somewhat elastic supply.
• D) somewhat elastic demand.
• E) perfectly inelastic demand.

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Definitions:

Vendor Section

A designated area within a software application or platform where information and transactions related to suppliers are managed.

Customers List

A record or database that contains information about a business's customers, including contact information and transaction history.

Create Invoices

The process of generating bills for goods or services provided, requesting payment from customers.

Sales Account

An account in the general ledger that records the revenue from goods sold or services rendered to customers.