Question

suppose the government is studying the potential impact of a tax in various markets. the supply and demand curves in those markets are depicted on the single graph above. refer to the graph to answer the following questions: 1. the most elastic supply and demand curves are select 2. select the smallest in the market where the supply d, s d, s d, s d, s 3. the largest in the market where the supply and demand curves are select 4. the deadweight loss in the market with supply s and demand d* will be

Explanation:

Step1: Recall elasticity concept

Elasticity is related to the flatness of curves. Flatter curves are more elastic.

Step2: Identify most - elastic curves

Among the given curves, $D'$ and $S'$ are the flattest. So they are the most elastic.

Answer:

1. $D', S'$