Supply and Demand Both Tend to Become More Elastic in the Long

question 37

Essay

Supply and demand both tend to become more elastic in the long run.What does this mean for the deadweight loss and tax revenue from a tax in the long run compared to the short run?

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Definitions:

Treatments

In experimental research, different conditions applied to groups to observe and measure the effects.

Observational Study

A research method in which the researcher observes subjects in their natural environment without manipulation or intervention.

Data Collection

The process of gathering and measuring information on targeted variables to answer relevant questions and evaluate outcomes.

Direct Observation

The method of collecting data by seeing and recording events as they occur naturally or in a controlled setting without manipulation.