Steep demand curve indicates prices can increase quickly

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All of these statements are false, and I need help figuring out why they're wrong and what the correct answer is and why.

1. Because a steep demand curve indicates prices can increase quickly when the quantity demanded rises only a little bit, steep demand curves represent goods that are very elastic.

2. When price controls are implemented, one group wins at the expense of the other group, but society as a whole doesn’t suffer. For instance, when you raise the minimum wage, it simply represents a transfer from producers to workers, and has no real effect on total economic activity.

3. In order to create more revenues for government, taxes should be implemented on either wealthy individuals or on the luxury items they buy (i.e. jewellery, yachts, stocks and bonds, expensive cars) because they can afford them the most.

Reference no: EM13840336

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