Other Things Equal,the Deadweight Loss of a Tax

question 48

Multiple Choice

Other things equal,the deadweight loss of a tax

• A)decreases as the size of the tax increases.
• B)increases as the size of the tax increases,but the increase in the deadweight loss is less rapid than the increase in the size of the tax.
• C)increases as the size of the tax increases,and the increase in the deadweight loss is more rapid than the increase in the size of the tax.
• D)increases as the price elasticities of demand and/or supply increase,but the deadweight loss does not change as the size of the tax increases.

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Definitions:

Contract for Sale

A legal agreement between a buyer and seller regarding the exchange of goods, services, or property for payment or promise of payment.

Sources of Law

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Sales Contracts

Legal agreements that define the terms of sale of goods or services from a seller to a buyer.

Uniform Commercial Code

A comprehensive set of laws governing commercial transactions in the United States, designed to standardize laws across states and simplify the legal aspects of buying and selling goods.