Question
the government imposes a tax on sausage pizza. Of the following elasticities, the deadweight loss from the tax is largest when the price elasticity of
the government imposes a tax on sausage pizza. Of the following elasticities, the deadweight loss from the tax is largest when the price elasticity of demand for pizza equals...
a) 1
b) 0
c) 1/2
d) 4
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Introduction to Econometrics
Authors: James H. Stock, Mark W. Watson
3rd edition
133595420, 978-0138009007, 138009007, 978-0133486872, 133486877, 978-0133595420
