The deadweight loss from a tax

Assignment Help Business Economics

Reference no: EM13732373

The deadweight loss from a tax of $x per unit will be smallest in a market

a. in which demand is elastic and supply is inelastic.

b. in which demand is inelastic and supply is elastic.

c. in which demand is inelastic and supply is inelastic.

d. None of the above is correct; we need to know the value of x in order to determine the answer.

Reference no: EM13732373

Questions Cloud

Considering either a tradable emission permit system : Suppose the authorities are considering either a tradable emission permit system, in which they give half the permits to each firm, or a tax system. If both systems work perfectly, how much will the firms have to pay, in total, for pollution reductio..

Implications of level of both consumer and government debt : What do you think are the implications of the level of both consumer and government debt? What are the implications of foreign ownership of US government debt?

The federal reserve attempts to keep prices stable : The Federal Reserve attempts to keep prices stable and unemployment low. Is there are a contradiction in these objectives? Describe the monetary policy tools that are available to the Federal Reserve to achieve these objectives.

Manufacturer of an inspecting and profiling web controller : A manufacturer of an inspecting and profiling web controller has a capital investment of $200000, a fixed cost of $83000 per year and variable costs of $60 per unit produced. If the product is sold at $90 per unit, determine the breakeven quantity pe..

The deadweight loss from a tax : The deadweight loss from a tax of $x per unit will be smallest in a market

Market failure is the inability : Market failure is the inability of

Decrease in quantity demanded : A particular good, an 8 percent increase in price causes a 12 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?

The law of demand states : The law of demand states that, other things equal, an increase in

Decrease in demand is represented : Decrease in demand is represented by a

User Account

All Pages