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Unformatted text preview: very little change in demand based on a change in price. Much larger deadweight loss on the elastic graph than the inelastic. This minimizes the efficeny loss when there is a tax added 5) DWL= an inefficacy due to a relative tax 6) To reduce energy use the most, youd tax the elastic because it gets the greatest responsivness based on a change of price. Malthus- populaions would outgrow food supplies keeping the masss of people perpetually at a subsistence standard of living To have economic growth gdp must rise faster than population growth...
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This test prep was uploaded on 02/01/2009 for the course AEM 2500 taught by Professor Poe,g. during the Fall '07 term at Cornell University (Engineering School).
- Fall '07