To keep deadweight losses to a minimum, products with high elasticities of supply and demand should be taxed.

Name: To keep deadweight losses to a minimum, products with high elasticities of supply and demand should be taxed.
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Question

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Taxing products with high elasticities of supply and demand typically leads to larger deadweight losses because consumers and producers are more responsive to price changes, causing significant reductions in quantity traded.

To Keep Deadweight Losses to a Minimum, Products with High