Question

question 11 (1 point) what happens as elasticities of supply and demand increase? the more equitable the distribution of a tax between buyers and sellers the smaller the deadweight loss from a tax the greater the deadweight loss from a tax the less intrusive a tax will be on a market

Explanation:

When the elasticities of supply and demand increase, buyers and sellers are more responsive to price - changes. A tax creates a wedge between the price buyers pay and the price sellers receive. With higher elasticities, the quantity traded changes more significantly in response to this tax - wedge. This leads to a larger reduction in the quantity traded and a greater deadweight loss. Deadweight loss is the inefficiency caused by the tax.

Answer:

The greater the deadweight loss from a tax