Considering a Given Increase in Price Due to a Tax,the

question 108

Multiple Choice

Considering a given increase in price due to a tax,the less price elastic the demand curve is,the:

• A) larger the drop in equilibrium quantity.
• B) smaller the amount of deadweight loss created.
• C) larger the amount of deadweight loss created.
• D) more surplus that is transferred to consumers.

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Definitions:

Personal Hygiene

The practice of maintaining cleanliness and grooming of the body to promote health and wellbeing.

Anhedonia

The loss of interest in and inability to gain pleasure from most activities, a symptom often associated with depression.

Alogia

A reduction in the amount or content of speech, often seen in schizophrenia, marked by brief and unelaborated responses.