The deadweight loss of a per-unit tax would tend to be larger,
A) the fewer the number of substitutes.
B) the greater the fraction of family income spent on the item.
C) if we are in the short run rather than the long run.
D) if entire categories were taxed (beer)rather than a specific brand (Molson).
E) the more inelastic is demand.

Question

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The Answer of The deadweight loss of a per-unit tax would tend to be larger,
A) the fewer the number of substitutes.
B) the greater the fraction of family income spent on the item.
C) if we are in the short run rather than the long run.
D) if entire categories were taxed (beer)rather than a specific brand (Molson).
E) the more inelastic is demand.

The Deadweight Loss of a Per-Unit Tax Would Tend to Be