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The Size of the Deadweight Loss, or Excess Burden, of a Tax

Question 29

Multiple Choice

The size of the deadweight loss, or excess burden, of a tax depends on the


A) number of demanders and the number of suppliers.
B) elasticities of demand and supply.
C) amount of producer surplus but not the amount of consumer surplus because it is the producers who send the tax revenues to the government.
D) strength of demand.
E) strength of supply.

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