Consider a good to which a per-unit tax applies. The size of the deadweight that results from the tax is smaller, the
a. less elastic is the demand for the good.
b. less elastic is the supply of the good.
c. smaller is the amount of the tax.
d. All of the above are correct.
d
Economics
You might also like to view...
Refer to the figure above. When the monopolist is free to set the price, ________
A) it makes a profit of $150 B) it makes a loss of $150 C) it makes a profit of $300 D) it makes a loss of $300
Economics
Economic profit is
A) equal to the firm's total revenue minus its opportunity costs. B) an opportunity cost of operating the firm. C) equal to the firm's total revenue minus its normal profit. D) the average return for supplying entrepreneurial ability.
Economics