Which of the following events always would increase the size of the deadweight loss that arises from the tax on gasoline?
a. The demand for gasoline becomes more inelastic.
b. The slope of the supply curve for gasoline becomes steeper.
c. The amount of the tax per gallon of gasoline increases.
d. All of the above are correct.
c
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A 3 percent increase in the price of cotton leads to a 6 percent decrease in the quantity demanded of cotton. The absolute price elasticity of demand is
A) 3. B) 2. C) 0.5. D) 0.33.
How do new classical economists differ from Keynesian economists in their assumptions about how government borrowing affects household consumption and borrowing patterns?
The overall volume of daily currency trade was __ in 2007.
a. $3.2 billion b. $32 billion c. $320 trillion d. $320 billion
All of the following are most likely to be fixed costs EXCEPT the cost relating to
A. rent. B. insurance. C. taxes. D. packaging.