Figure 8-16 -Refer to Figure 8-16. Panel (A) and Panel (B) Each

question 151

Multiple Choice

Figure 8-16

-Refer to Figure 8-16. Panel (a) and Panel (b) each illustrate a $2 tax placed on a market. In comparison to Panel (b) , Panel (a) illustrates which of the following statements?

• A) When demand is relatively inelastic, the deadweight loss of a tax is smaller than when demand is relatively elastic.
• B) When demand is relatively elastic, the deadweight loss of a tax is larger than when demand is relatively inelastic.
• C) When supply is relatively inelastic, the deadweight loss of a tax is smaller than when supply is relatively elastic.
• D) When supply is relatively elastic, the deadweight loss of a tax is larger than when supply is relatively inelastid.

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Definitions:

Disjuncts

Individual choices or alternatives within a disjunctive proposition, where the truth of any one disjunct implies the falsity of the others when presented in an "either/or" format.

Syllogisms

A form of logical reasoning where a conclusion is drawn from two given or assumed propositions (premises), each of which shares a common or middle term not present in the conclusion.

Hypothetical Proposition

A statement that posits a condition and its potential outcome, often structured as "if-then."

Converse

In logic, the converse of a conditional statement is formed by reversing its antecedent and consequent.