The Deadweight Loss from a $3 Tax Will Be Largest

question 6

Multiple Choice

The deadweight loss from a $3 tax will be largest 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:

Medians

The middle value in a data set, which divides the set into two equal halves.

Mann-Whitney U

A nonparametric test used to compare differences between two independent samples.

Wilcoxon Rank Test

A non-parametric statistical test used to compare two related samples to determine if their population means ranks differ.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.