Answer to Question #276753 in Microeconomics for Anna

Question

For which type of goods will the deadweight loss be smaller as the result of a tax? For those:

A. whose supply and demand curves are more inelastic.

B. whose supply and demand curves are more elastic.

C. that are relatively expensive.

D. that are consumed by a large fraction of the population.

Answer 1

A. whose supply and demand curves are more inelastic.