Question

A good with a supply generates no deadweight loss when taxed. D a. somewhat inelastc O b. somewhat elastic O c. slowly increasing O d. perfectly elastic e perfecty inelastic QUESTION 11 A local merchant raises the price of his good and finds that his total revenues increase. The demand for this good is D a. unitary elastic O b. inelastic. O c. relatively price sensitive. O d. elastic O e. perfectly elastic. QUESTION 12 Because a product's demand for an input to its production depends on the decision to produce this product, i is called demand. O b. input O c. dependent o d. production O e. derived

Answer 1

Answer:

e perfecty inelastic

b. inelastic

e. derived

Explanation:

Deadweight loss is inefficiency that occurs as a result of taxation.

Deadweight loss is the difference between the quantity demanded/ supplied when there's no tax and the quantity demanded / supplied as a result of tax.

When a good has a perfectly inelastic supply, the quantity supplied doesn't change when there's a change in price.

A good with perfectly inelastic supply has zero deadweight loss.

A good has an inelastic demand when a change in price has a little effect on the quantity demanded. If a good has an inelastic demand, if price is increased, there's little or no change in quantity demanded and therefore total revenue increases.

Derived demand is when the demand for a good or a factor of production is as a result of the demand for another good. For example, if there's no demand for bread, there would be no demand for bakers.

I hope my answer helps you.