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Marco Martinez
on Oct 25, 2024

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Given any upward-sloping supply curve for a good,the more inelastic the demand curve,the _____ equilibrium output will fall and the _____ will be the deadweight loss when the government imposes an excise tax.

A) more;smaller
B) more;larger
C) less;smaller
D) less;larger

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved.

Excise Tax

A tax imposed on specific goods, services, or transactions, often included in the price of products like tobacco, alcohol, and fuel.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing and able to sell.

  • Fathom the consequences of elasticity on deadweight loss.
  • Ascertain which commodities experience the lowest and highest deadweight loss as a consequence of taxation.
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Alexandra SpizuocoNov 01, 2024
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