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Which of the Following Conditions Results in the Highest Deadweight

Question 60

Multiple Choice

Which of the following conditions results in the highest deadweight loss from a tax?


A) Low price elasticity of demand and low price elasticity of supply
B) Low price elasticity of demand and high price elasticity of supply
C) High price elasticity of demand and low price elasticity of supply
D) High price elasticity of demand and high price elasticity of supply
E) Price elasticity of demand is equal to price elasticity of supply

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