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Explain about the deadweight loss and elasticities.
Deadweight Loss and Elasticities
The general rule for economic policy is the other things equivalent; you need to choose the policy which produces the smallest deadweight loss. But how we can predict the size of the deadweight loss connected with a specified policy.
Price Elasticity A measure of the change in demand for a product relative to unit changes in the price of the product. If the percentage change in quantity demanded is greater
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