In order to minimize deadweight loss generated by taxation, a tax should be placed on goods that are:

Name: In order to minimize deadweight loss generated by taxation, a tax should be placed on goods that are:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

To minimize deadweight loss, a tax should be placed on goods that are price inelastic because consumers are less sensitive to price changes for these goods, leading to smaller reductions in quantity demanded and thus less distortion in the market.

In Order to Minimize Deadweight Loss Generated by Taxation, a Tax