A tax on petrol is likely to?

3034EconomicsMedium

Acause a greater deadweight loss in the short run when compared to the long run.

Bgenerate a deadweight loss that is unaffected by the time period over which it is measured

CNone of these answers

Dcause a greater deadweight loss in the long run when compared to the short run

Correct answer

D. cause a greater deadweight loss in the long run when compared to the short run

Explanation

The correct answer is cause a greater deadweight loss in the long run when compared to the short run.

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