Figure 8-16

question 281

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:

Nondifferential Misclassification

A type of measurement error in which the misclassification of an exposure or outcome does not vary between the study groups.

Differential Misclassification

A type of error in epidemiological studies where the misclassification of exposure or disease status differs between groups.

Case-Control Study

A study layout where two sets are identified based on different outcomes and analyzed to discover a causative element.

Confounder

A factor other than the independent variable that may affect the outcome of a study, potentially leading to erroneous conclusions.