Figure 8-16

question 244

Multiple Choice

Figure 8-16
-Refer to Figure 8-16. Panel a) and Panel b) each illustrate a $2 tax placed on a market. In comparison to Panel b) , Panel a) illustrates which of the following statements?

• A) When demand is relatively inelastic, the deadweight loss of a tax is smaller than when demand is relatively elastic.
• B) When demand is relatively elastic, the deadweight loss of a tax is larger than when demand is relatively inelastic.
• C) When supply is relatively inelastic, the deadweight loss of a tax is smaller than when supply is relatively elastic.
• D) When supply is relatively elastic, the deadweight loss of a tax is larger than when supply is relatively inelastic.

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Definitions:

Intense Stress

A high level of psychological pressure or strain, which can impact an individual's mental and physical health.

Serious Family Violence

Acts of family violence characterized by severe physical harm, serious emotional abuse, or life-threatening actions towards family members.

Rate

A measure, quantity, or frequency, typically one measured against another quantity or measure.

Statistics

The science of collecting, analyzing, interpreting, and presenting numerical data, often to identify patterns or trends.