4139EconomicsMedium
Deadweight loss is greatest when?
Aboth supply and demand are relatively inelastic
Bsupply is elastic, and demand is perfectly inelastic
Cdemand is elastic, and demand is perfectly inelastic
Dboth supply and demand are relatively elastic
Correct answer
D. both supply and demand are relatively elastic
Explanation
The correct answer is both supply and demand are relatively elastic.