Please state whether each of the following claims is True, False, or Uncertain. Provide a clear, well-reasoned explanation for your conclusion.

A. Claim: Tax credits are more vertically equitable than tax deductions of equal magnitude.

B. Consider two markets (1 and 2) that are identical with one exception: market 1 has a pre-existing distortion and market 2 does not. Claim: A tax on market 1 will generate more deadweight loss than an equivalent tax on market 2.

C. Claim: The theory of optimal commodity taxation suggests that inelastically demanded goods should be taxed at a high rate and elastically demanded goods should not be taxed at all.