When the government imposes taxes on buyers or sellers of a good, society
| a. | is better off because the government’s tax revenues exceed the deadweight loss. | |
| b. | gains efficiency but loses equality. | |
| c. | moves from an elastic supply curve to an inelastic supply curve. | |
| d. | loses some of the benefits of market efficiency. |
Answer
answer is d,loses some of the benefits of market efficiency because there is deadweight loss because the quantitytraded goes down.