The more elastic the demand curve, the ____ will be the effect of ...

[nelaaney]

The more elastic the demand curve, the ____ will be the effect of a tax on the quantity exchanged and the ____ will be the welfare cost.
 a. greater; greater.
 b. greater; smaller.
  c. smaller; greater.
  d. smaller; smaller.

Question 2

When expansionary policy is unanticipated, it leads to a short-run expansion in output and employment.
 a. True
  b. False
  Indicate whether the statement is true or false

[manuelcastillo]

Answer to Question 1

a

Answer to Question 2

True