The Deadweight Loss from a Tax of $5 Per Unit

question 348

Multiple Choice

The deadweight loss from a tax of $5 per unit will be smallest in a market with

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

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Definitions:

Minimal Change Nephrotic Syndrome

A kidney disorder mostly seen in children that leads to significant proteinuria, swelling, and risk of infection, but with minimal changes seen in kidney tissue under a microscope.

Prednisone

A synthetic corticosteroid drug used to suppress the immune system and reduce inflammation in conditions such as asthma, arthritis, and allergic reactions.

Infection

The invasion and multiplication of microorganisms such as bacteria, viruses, and parasites that are not normally present within the body, often causing illness.

Urinary Tract Infections

Infections that can occur anywhere along the urinary tract, including the bladder, kidneys, ureters, and urethra, mostly caused by bacteria.