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Question
In the long run, both supply and demand tend to become more elastic. This suggests that, in the long run, the
a. revenue generated from the tax will increase.
b. deadweight loss from a tax will be less than it is in the short run.
c. deadweight loss from a tax will be zero.
d. deadweight loss from a tax will be greater than it is in the short run.
e. government will likely reduce tax rates.
Answer
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