Other things being equal, as the size of a tax varies, the deadweight loss from the tax varies according to the square root of the size of the tax.

Name: Other things being equal, as the size of a tax varies, the deadweight loss from the tax varies according to the square root of the size of the tax.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The deadweight loss from a tax varies with the square of the size of the tax, not the square root.

Other Things Being Equal, as the Size of a Tax