In the long run,both supply and demand tend to become more elastic.This suggests that,in the long run,the
A) deadweight loss from a tax will be less than it is in the short run.
B) deadweight loss will be zero.
C) government will likely reduce tax rates.
D) tax revenue will be lower than it is in the short run.
E) tax revenue will be higher than it is in the short run.
Correct Answer:
Verified
Q85: The deadweight loss from a tax is
Q86: The net cost to society from the
Q87: The deadweight loss from a tax is
Q88: Assume that a $0.25/gallon tax on milk
Q89: When a tax is imposed,consumer surplus and
Q91: The cost to society created by distortions
Q92: Assume that a $0.10/pound tax on apples
Q93: The per-unit dollar amount of a tax
Q94: Deadweight loss is defined as
A) the cost
Q95: Taxes will almost always cause consumer prices
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