Assume the same upward supply curve for each of the following goods.Considering demand only,a tax on _____ would result in the LARGEST deadweight loss.

Question

Quizplus · Accepted Answer

Restaurant meals likely have a more elastic demand compared to gasoline, medicine, and tobacco, meaning consumers are more sensitive to price changes. A tax increase would significantly reduce the quantity demanded, leading to a larger deadweight loss.

Assume the Same Upward Supply Curve for Each of the Following