The deadweight loss due to a tax is likely to be greatest with ______.
a. a nearly vertical demand curve
b. an inelastic supply curve
c. an elastic demand curve
d. a nearly vertical supply curve
c. an elastic demand curve
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In the Cournot duopoly model, each firm assumes that
A) rivals will match price cuts but will not match price increases. B) rivals will match all reasonable price changes. C) the price of its rival is fixed. D) the output level of its rival is fixed.
Which of the following factors affects the quantity demanded of a company's stock?
a. The prices of other companies' stocks b. The price of the company's stock c. The returns on other possible investments d. Expectations regarding stock price movements e. Income of the investors
At an annual growth rate of 7 percent, real GDP will double in about:
A. 11½ years. B. 10 years. C. 13½ years. D. 9 years.
The appreciation of a currency will:
A. balance a trade surplus. B. worsen a country's comparative advantages. C. improve a country's comparative advantages. D. have no impact on a country's comparative advantages.