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How does elasticity affect the size of Deadweight Loss? - Principles of Microeconomics - Mankiw Ch 8

Adam Jones

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How does elasticity affect the size of Deadweight Loss? - Principles of Microeconomics - Mankiw Ch 8

640 просмотров · 2 года назад
Adam Jones
174 подписчика
640 просмотров · 2 года назад
Deadweight loss is the loss of gains from trade (economic surplus) when a tax is put in place but what causes it to be larger or smaller? The more trade is reduced the larger the losses. What causes the number of trades to decrease by a lot or a little? Elasticity!