Which of the following is definitely true for a per-unit tax in the goods market where neither demand nor supply is perfectly inelastic:
A. The more price inelastic demand is, the lower deadweight loss will be.
B. The more price inelastic supply is, the higher deadweight loss will be.
C. A demand become more price inelastic, the after tax price for consumers rises.
D. Both (a) and (b)
E. Both (b) and (c)
F. Both (a) and (c)
G. All of the above
H. None of the above
Answer: C
You might also like to view...
The interest rate that describes how well a lender has done in real terms after the fact is called the
A) ex post real interest rate. B) ex ante real interest rate. C) ex post nominal interest rate. D) ex ante nominal interest rate.
High prices do not occur in laissez-faire markets.
Answer the following statement true (T) or false (F)
The income left in the economy after paying for all consumption spending by households and government spending is called _____
a. disposable income b. household saving c. national saving d. national income
What is production? What economic factors are involved in production?
What will be an ideal response?