The Government Is Deciding Where to Put a $1 Tax-Either

question 16

Multiple Choice

The government is deciding where to put a $1 tax-either in a market with elastic supply and demand curves,or a market with inelastic supply and demand curves.If their aim is to raise the most revenue with the smallest deadweight loss,where should the tax be placed?

• A)In the market with elastic supply and demand curves
• B)In the market with inelastic supply and demand curves
• C)It is impossible to say without more information
• D)Since the burden is shared,it doesn't matter which market it is placed in

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Definitions:

Great Iconoclasm

A period in Byzantine history marked by the widespread destruction of religious images (icons) and the persecution of their veneration, occurring in two phases from 726 to 787 and 815 to 843.

Territories

Defined areas of land under the jurisdiction of a particular government, organization, or owner.

16th Century

The period from 1501 to 1600, marked by significant events like the Renaissance, the Reformation, and the beginning of European exploration and colonization of the New World.

Reformation

A major movement in the 16th century that sought to reform certain practices and doctrines of the Catholic Church, leading to the creation of Protestant churches.