What type of goods would you recommend that the government tax if it wants the tax to
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Question:
What type of goods would you recommend that the government tax if it wants the tax to result in no deadweight loss?
a. Inelastic goods with a price elasticity of demand and supply as close to infinity as possible
b. Elastic goods with a price elasticity of demand and supply as high as possible
c. Unit elastic good with a price elasticity of demand and supply as close to 1 as possible
d. Inelastic goods with a price elasticity of demand and supply as close to zero as possible
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