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Which of the following is not true of the deadweight loss from a small commodity tax? (a)It is zero if the demand curve is completely
Which of the following is not true of the deadweight loss from a small commodity tax?
(a)It is zero if the demand curve is completely inelastic.
(b) As the tax rate is increased, the deadweight loss also increases, but at a slower rate.
(c) It measures a loss in revenue relative to a lump-sum tax that causes the same decline in utility.
(d) It can be represented by a triangle under a demand curve.
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