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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- Fall '07
- Supply And Demand, Ceteris peribus, net economic surplus, Relatively inelastic means, demand curve= movement