Asked by

Kendall Smith
on Oct 25, 2024

verifed

Verified

If the government wants to minimize the deadweight loss from taxes,it should tax goods for which the:

A) price elasticity of demand is high.
B) price elasticity of demand is low.
C) price elasticity of supply is high.
D) demand is high.

Deadweight Loss

The reduction in economic efficiency that happens when a good or service doesn't reach or cannot reach equilibrium.

Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price.

Tax

A financial charge or levy imposed by a government on individuals or entities to fund public services and government spending.

  • Analyze strategies in taxation to lessen inefficiencies and minimize excessive losses.
verifed

Verified Answer

CW
Chrisinti WilliamsOct 30, 2024
Final Answer:
Get Full Answer