Question
What type of goods would you recommend that the government tax if it wants the tax to result in no deadweight loss? a. Inelastic goods
What type of goods would you recommend that the government tax if it wants the tax to result in no deadweight loss?
a. Inelastic goods with a price elasticity of demand and supply as close to infinity as possible
b. Elastic goods with a price elasticity of demand and supply as high as possible
c. Unit elastic good with a price elasticity of demand and supply as close to 1 as possible
d. Inelastic goods with a price elasticity of demand and supply as close to zero as possible
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Microeconomics
Authors: Dean Karlan, Jonathan Morduch
1st edition
978-0077332587, 007733258X, 978-0077332648, 77332644, 978-1259163531
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