The dead-weight loss from an excise tax
A) is greater if demand is perfectly inelastic.
B) is caused by a shift in consumer preferences when the tax is raised.
C) is the lost surplus that results from higher prices and lower output resulting from the tax.
D) is of little concern to policy makers since all excise taxes are "sin" taxes.
E) is the difference between consumer surplus and producer surplus.
Correct Answer:
Verified
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