Multiple Choice
The deadweight loss associated with a tax on a commodity is generated by
A) the consumers who still choose to consume the commodity but pay a higher price that reflects the tax.
B) the consumers who choose to not consume the commodity that is taxed.
C) all citizens who are able to use services provided by government.
D) the consumers who are unable to avoid paying the tax.
Correct Answer:
Verified
Correct Answer:
Verified
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