What happens as elasticities of supply and demand increase
A)the smaller the deadweight loss from a tax
B)the less intrusive a tax will be on a market
C)the greater the deadweight loss from a tax
D)the more equitable the distribution of a tax between buyers and sellers

Question

Quizplus · Accepted Answer

As elasticities of supply and demand increase, the quantity response to a tax is larger, leading to a greater deadweight loss.

What Happens as Elasticities of Supply and Demand Increase