21. 22. 23. 24. 25. 26. 27. Taxes will almost always increase the price the buyer pays. How much they increase depends on a. b. Both supply and demand tend to become more elastic in the long run. Because of that, in the long run, 1 P-PP'P If Governor Abbott wants to raise tax revenues for Texas schools but doesn't Want to create any deadw how often the tax is collected 0. where the tax is levied the amount of the tax d. the elasticities of supply and demand deadweight loss from a tax will be less than it is in the short run deadweight loss will be zero deadweight loss from a tax will be greater than it is in the short run tax revenue will be higher than it is in the short run loss, he should propose a tax on a good with a a. very elastic demand c. perfectly inelastic demand b. very elastic supply d. somewhat elastic demand The deadweight loss from a tax is likely to be less with a good that has a. few complements e. no substitutes b. many substitutes d. an elastic supply Compared to buyers, sellers will lose a smaller amount of surplus from a tax if a. supply and demand are equally elastic. b. supply is less elastic than demand. c. supply is more elastic than demand. d. sellers have other products to meet the need. Ireland's tax on plastic bags successfully reduced consumer use of these bags because the a. demand for plastic bags is very inelastic b. grocery stores in Ireland refused to collect the tax c. demand for plastic bags is very elastic d. supply of plastic bags is very inelastic My friends Tim and Deana travel to Destin, Florida at least five times a year. They can afford to buy a there. The reason they do not buy a condo in Destin is because a. b. C. d. the condo's expected MU is less than the price of the condo the condo's expected MU is greater than the price of the condo they are not maximizing utility they don't Consider the marginal cost