question
what is Deadweight loss?
answer
the fall in total surplus that results from a market distortion, such as tax
question
what affects DWL?
answer
price elasticities of supply and demand (inelastic small) (elastic large)
question
DWL (y) and Tax size (x) graph shape
answer
exponential
question
Tax revenue (y) and tax size (x) graph shape
answer
mound (laffer curve)
question
small tax yields what size dwl?
answer
small dwl small revenue
question
medium tax yields what size dwl?
answer
large dwl large revenue
question
large tax yields what size dwl?
answer
large dwl small revenue
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