If taxed, Which of the following markets is likely to experience a high deadweig

Question

If taxed, Which of the following markets is likely to experience a high deadweight loss? A) the maket for cigarettes B) the market for eggs C) the market for Mercedes-Benz cars D) the market for healthcare
The Laffer curve shows that m A) deadweight loss increases with elasticity of demand B) tax revenue first increases, then decreases with tax size C) deadweight loss increases with tax size D) deadweight loss increases with elasticity of supply If taxed, Which of the following markets is likely to experience a high deadweight loss? A) the maket for cigarettes B) the market for eggs C) the market for Mercedes-Benz cars D) the market for healthcare
The Laffer curve shows that m A) deadweight loss increases with elasticity of demand B) tax revenue first increases, then decreases with tax size C) deadweight loss increases with tax size D) deadweight loss increases with elasticity of supply A) the maket for cigarettes B) the market for eggs C) the market for Mercedes-Benz cars D) the market for healthcare
The Laffer curve shows that m A) deadweight loss increases with elasticity of demand B) tax revenue first increases, then decreases with tax size C) deadweight loss increases with tax size D) deadweight loss increases with elasticity of supply

Explanation / Answer

1 Answer is option C, because the demand for Mercedes Benz is highly elastic .

2.option B ,because laffer curve is concave in shape that is laffer curve is single peaked.

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