If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then...

 

Transcribed Image Text:

If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units. If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units. If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units. If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units. If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units. If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units. If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units. If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units. If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units. If the government wants to increase tax revenue while keeping deadweight loss at a minimum, then it should O Tax goods that have low elasticity of demand and high elasticity of supply. O Tax goods that have high elasticity of demand and low elasticity of supply. O Tax goods that have high elasticity of demand and supply. O Tax goods that have low elasticity of demand and supply. The govermment needs to raise revenue and is considering which good to tax. If the govemment is keen to keep the deadweight loss as low as possible, it should tax: O The good with elasticity of demand of 0.75 and unit elasticity of supply O The good with unit elasticity of demand and unit elasticity of supply O The good with elasticity of demand above 1 and elasticity of supply above 1 O The good with elasticity of demand of 0.75 and elasticity of supply of 0.75 Consider a market where demand is described by the equation Q 80 - 10P and supply is described by the equation Q 10 • 5P. AL a price of $7. which of the following is true? O There is a surplus of 35 units. O The market is in equilibrium. O Quantity supplied equals quantity demanded. O There is a shortage of 35 units.

Answer rating: 100% (QA)

Option D As supply demand grows relatively more inelastic producers consumers bea... View the full answer