The Deadweight Loss from a Tax of $X Per Unit

question 57

Multiple Choice

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

• A)in which demand is elastic and supply is inelastic.
• B)in which demand is inelastic and supply is elastic.
• C)in which demand is inelastic and supply is inelastic.
• D)None of the above are correct;we need to know the value of x in order to determine the answer.

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Definitions:

Clavicle

A bone located in the shoulder region, known as the collarbone, which serves as a strut between the shoulder blade and the sternum.

Humerus

The humerus is the long bone in the upper arm, extending from the shoulder to the elbow.

Radius

A bone in the forearm that extends from the lateral side of the elbow to the thumb side of the wrist, also refers to the half-length of a circle's diameter.

Tibia

The inner and typically larger of the two bones between the knee and the ankle in vertebrates, parallel with the fibula.