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:

Volatile

In computing, it refers to memory that requires power to maintain the stored information; it loses its content when the power is turned off.

Storage Location

A specific area in memory or on a storage device where data is kept.

RAM

Random Access Memory, a type of computer memory that can be accessed randomly and is used for storing working data and machine code.

Reflective

Pertaining to a surface or material that sends back light, heat, or sound without absorbing it, often used in screen technology or safety equipment.