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.

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Definitions:

Functionalism

A theory in psychology that emphasizes the purpose and practical consequences of mental processes and behaviors.

Mental Processes

The operations of the mind, such as thinking, learning, memory, and perception, that enable understanding and response to the environment.

Behaviourism

A theory in psychology which states that all behaviors are learned through interaction with the environment, emphasizing the importance of observable actions over internal mental states.

Behaviourist

A psychologist who studies and applies theories based on the belief that all behaviors are acquired through conditioning.