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If the goal is to have the smallest deadweight loss, then a $1 tax should be imposed upon:    a a market with highly elastic

If the goal is to have the smallest deadweight loss, then a $1 tax should be imposed upon:    a a market with highly elastic

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 6CQQ
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Question 22

 

 
If the goal is to have the smallest deadweight loss, then a $1 tax should be imposed upon: 
 
a
a market with highly elastic demand and highly elastic supply.
b
a market with highly inelastic demand and highly inelastic supply.
c
a market with highly elastic demand and unit elastic supply.
d
a market with unit elastic demand and unit elastic supply.
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