Suppose the government imposes a tax on cheese. The deadweight loss from this tax will likely be greater in the
a. first year after it is imposed than in the eighth year after it is imposed because demand and supply will be more elastic in the first year than in the eighth year.
b. first year after it is imposed than in the eighth year after it is imposed because demand and supply will be less elastic in the first year than in the eighth year.
c. eighth year after it is imposed than in the first year after it is imposed because demand and supply will be more elastic in the first year than in the eighth year.
d. eighth year after it is imposed than in the first year after it is imposed because demand and supply will be less elastic in the first year than in the eighth year.
d
You might also like to view...
If credit card balances rise in the economy, then M1 will ________ and M2 will ________
A) decrease; increase B) not change; increase C) increase; decrease D) not change; not change E) increase; increase
From the point of view of economic efficiency, output in a monopolized market is
a. too high. b. perfect. c. too low. d. undesirable.