In general, the deadweight loss associated with an import tariff or quota becomes relatively larger when:
A) supply and demand are inelastic.
B) supply is elastic and demand is inelastic.
C) demand is elastic and supply is inelastic.
D) supply and demand are elastic.
D
Economics
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The existence of the tradeoff along the PPF means that the PPF is
A) bowed outward. B) linear. C) negatively sloped. D) positively sloped.
Economics
In the above figure, if the price is $8 then there is a
A) surplus of 100. B) surplus of 200. C) shortage of 100. D) shortage of 200.
Economics