Considering a given increase in price due to a tax, the less price elastic the demand curve is, the:
A. larger the drop in equilibrium quantity.
B. smaller the amount of deadweight loss created.
C. larger the amount of deadweight loss created.
D. more surplus that is transferred to consumers.
B. smaller the amount of deadweight loss created.
You might also like to view...
How do auctions help in price discovery?
What will be an ideal response?
Political and social desires to increase the "quality of life" in the U.S. led to an increase in the federal funding of public libraries, television and radio as well as increases and broadened uses of federal lands, waters and parks
Indicate whether the statement is true or false
One of the most famous cartels is OPEC
a. True b. False Indicate whether the statement is true or false
Assuming that the demand and supply of a good have moved in the same direction, and by the same amount, the new equilibrium would represent: a. an increase in price and an increase in quantity exchanged
b. no change in price and an increase in quantity exchanged. c. a decrease in price and a decrease in quantity exchanged. d. no change in price, and an indeterminate change in quantity exchanged.