The more elastic the demand for a good, the _____
a. larger the deadweight loss from a tax
b. smaller the deadweight loss from a tax
c. more the tax burden on the buyers
d. more the tax revenue of the government
a
Economics
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A grocery store sells soup for $1.50 a can, or $2.50 for two cans. To a customer, the marginal cost of buying the second can of soup is
a. $1. b. $1.25. c. $1.50. d. $2.50.
Economics
The liquidity trap is the
A) vertical portion of the demand curve for money. B) horizontal portion of the demand curve for money. C) vertical portion of the supply curve of money. D) horizontal portion of the supply curve of money. E) vertical portion of the demand curve for investment.
Economics