The Deadweight Loss from a Tax of $2 Per Unit

question 3

Multiple Choice

The deadweight loss from a tax of $2 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.

---

Definitions:

Environmental Factors

External elements, including physical, chemical, and biological factors, that can influence living organisms or human health.

Rapid Development

The quick growth or advancement in a particular field, technology, or biological organism, often outpacing expected timelines.

Heredity

The passing on of physical or mental traits genetically from one generation to another.

Environment

The combination of physical, chemical, and biological factors and conditions that influence the life of an organism or community.