Which of the Following Is Definitely True for a Per-Unit

question 7

Multiple Choice

Which of the following is definitely true for a per-unit tax in the goods market where neither demand nor supply is perfectly inelastic:

• A)The more price inelastic demand is, the lower deadweight loss will be.
• B)The more price inelastic supply is, the higher deadweight loss will be.
• C)A demand become more price inelastic, the after tax price for consumers rises.
• D)Both (a) and (b)
• E)Both (b) and c
• F)Both (a) and (c)
• G)All of the above
• H)None of the above

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