The elasticity for demand of widgets is equal to -2. The deadweight loss caused by a tax on widgets is equal to zero when: A) none of the other answers B) the elasticity of supply is equal to zero C)the elasticity of supply is infinite D) the economic & statutory incidence are the same.
The elasticity for demand of widgets is equal to -2. The deadweight loss caused by a tax on widgets is equal to zero when: A) none of the other answers B) the elasticity of supply is equal to zero C)the elasticity of supply is infinite D) the economic & statutory incidence are the same.
Chapter20: Elasticity: Demand And Supply
Section: Chapter Questions
Problem 16E: Who would pay a tax imposed on the supplier when the price elasticity of supply is inelastic and the...
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The elasticity for demand of widgets is equal to -2. The deadweight loss caused by a tax on widgets is equal to zero when:
A) none of the other answers
B) the elasticity of supply is equal to zero
C)the elasticity of supply is infinite
D) the economic & statutory incidence are the same.
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