Figure 8-22 -Refer to Figure 8-22.Suppose the Government Initially Imposes a $3

question 8

Multiple Choice

Figure 8-22
-Refer to Figure 8-22.Suppose the government initially imposes a $3 per-unit tax on this good.Now suppose the government is deciding whether to lower the tax to $1.50 or raise it to $4.50.Which of the following statements is not correct?

• A)Compared to the original tax,the larger tax will decrease tax revenue.
• B)Compared to the original tax,the smaller tax will decrease deadweight loss.
• C)Compared to the original tax,the smaller tax will decrease tax revenue.
• D)Compared to the original tax,the larger tax will increase deadweight loss.

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Definitions:

Refusing A Request

The act of denying or not granting someone's appeal or petition for assistance, information, or access.

Buffer

A buffer is a neutral or non-committal statement used to soften or cushion the impact of what follows, often used in written and verbal communication.

Explanation

The act of making something clear or understandable by describing or presenting it in detail.

Bad-News Message

A communication method used to convey unfortunate or unfavorable information in a tactful and sensitive manner.