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Question 4 Match the change in deadweight loss for each of the following market: if a new tax were to be introduced in each: (some
Question 4 Match the change in deadweight loss for each of the following market: if a new tax were to be introduced in each: (some categories may have more than one answer) _ v Taxing a good/service with a negative extemality. A, DWL is reduced. _ v Taxing a good/service where demand or supply is perfectly inelastic. B. The most DWL possible is created (supply/demand is perfectly elastic). _ v Taxing a good/service with close (but not perfect) substitutes. c, No DWL. . v Taxing a good/service with perfect substitutes. D. DWL is made even larger. . v Taxing a good/service with a positive externality. E. Some DWL is created (supply/demand not perfectly elastic). v Taxing a public good. v Taxing a good/service provided by a monopoly
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