The Deadweight Loss from a $2 Tax Will Be Smallest

question 207

Multiple Choice

The deadweight loss from a $2 tax will be smallest in a market with

• A) elastic demand and elastic supply.
• B) elastic demand and inelastic supply.
• C) inelastic demand and elastic supply.
• D) inelastic demand and inelastic supply.

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Definitions:

Political Pollster

A professional or organization that conducts polls and surveys to gauge public opinion and preferences in the political arena.

Quantitative Data

Numerical data that can be measured and ordered, representing quantities and amounts.

Interval

A range of values used to estimate a population parameter, including a measured level of reliability.

Ratio

A quantitative relationship between two numbers showing how many times the first number contains the second or vice versa.