Table 8-1
-Refer to Table 8-1. Suppose the government is considering levying a tax in one or more of the markets described in the table. Which of the markets will allow the government to minimize the deadweight loss(es) from the tax?
A)market A only
B)markets A and C only
C)markets B and D only
D)market C only

Question

Table 8-1 
-Refer to Table 8-1. Suppose the government is considering levying a tax in one or more of the markets described in the table. Which of the markets will allow the government to minimize the deadweight loss(es) from the tax?
A)market A only 
B)markets A and C only 
C)markets B and D only 
D)market C only

Quizplus · Accepted Answer

Deadweight loss from a tax is minimized in markets with inelastic supply and demand. Markets B and D likely have inelastic characteristics, allowing for minimized deadweight loss.

Table 8-1 -Refer to Table 8-1. Suppose the Government Is Considering Levying