If a policymaker wants to raise revenue by taxinggoods while minimizing the deadweight losses, heshould look for goods with _________ elasticities ofdemand and _________ elasticities of supply.a. small; smallb. small; largec. large; smalld. large; large

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Application: The Cost Of Taxation
Section: Chapter Questions
Problem 6CQQ
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If a policymaker wants to raise revenue by taxing
goods while minimizing the deadweight losses, he
should look for goods with _________ elasticities of
demand and _________ elasticities of supply.
a. small; small
b. small; large
c. large; small
d. large; large

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