Solved

Other Things Equal,the Deadweight Loss of a Tax

Question 48

Multiple Choice

Other things equal,the deadweight loss of a tax


A) decreases as the size of the tax increases.
B) increases as the size of the tax increases,but the increase in the deadweight loss is less rapid than the increase in the size of the tax.
C) increases as the size of the tax increases,and the increase in the deadweight loss is more rapid than the increase in the size of the tax.
D) increases as the price elasticities of demand and/or supply increase,but the deadweight loss does not change as the size of the tax increases.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions