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| *The Commerce Journal>>>Other Taxes |
Deadweight Loss Question!? |
Consider four markets for luxury yachts, Markets A, B, C, and D. The demand for yachts in Market A is perfectly elastic. In Market B the price elasticity of demand, as an absolute value, is 3. In Market C the price elasticity of demand, as an absolute value, is 0.25. Finally, the demand for yachts in Market D is perfectly inelastic. What in the world are you asking? The train that left San Francisco will have a head-on crash with the train that left Chicago somewhere around Denver destroying your homework in the collision. |
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