TWO MC QUESTIONS

i ne government wants to collect tax revenue but it is worried about deadweight loss. Considering demand only (assuming all other factors including the supply, equilibrium price, equilibrium quantity, tax, etc. are the same), a tax on which of the following goods would result in the smallest deadweight loss? tobacco (price elasticity of demand = 0.7 restaurant meals (price elasticity of demand = 1.1) medicine (price elasticity of demand = 0.4) Gasoline (price elasticity of demand = 0.5) Question 12 (1 point) The market for jeans is in equilibrium with price at $36 and quantity at 6500. The government introduces a $1 per unit tax on jeans buyers. This causes equilibrium quantity to decrease to 6100. What is the deadweight loss? 300 400