Deadweight losses arising from an excise tax are greatest when demand:

A) and supply are relatively inelastic.
B) is relatively inelastic and supply is relatively elastic
C) is relatively elastic and supply is relatively inelastic.
D) and supply are relatively elastic.

Excise Tax

A tax imposed on specific goods, services, or activities within a country, often levied on items like tobacco, alcohol, and gasoline to discourage their use or generate revenue.

Deadweight Losses

Economic inefficiencies that occur when the equilibrium in a market is not achieved or is distorted, typically resulting in lost welfare or inefficiency.