The size of the deadweight loss that results from a tax on cola is smaller, the less of a necessity cola drinkers consider cola to be. more time cola sellers have to adjust to the tax. less time cola sellers have to adjust to the tax. more substitutes there are for cola.
Added by William W.
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Step 1: The deadweight loss is the loss of economic efficiency that occurs when the market is not in equilibrium. Show more…
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