In general, the deadweight loss associated with an import tariff or quota becomes relatively larger when:

A) supply and demand are inelastic.
B) supply is elastic and demand is inelastic.
C) demand is elastic and supply is inelastic.
D) supply and demand are elastic.

Deadweight Loss

The reduction in economic efficiency that happens when equilibrium is not reached or is unattainable for a specific good or service.

Import Tariff

A tax imposed by a government on goods and services imported into its country to protect domestic industries from foreign competition.

Supply and Demand

Economic model of price determination in a market, showing the relationship between the quantity of goods that producers wish to sell at various prices and the quantity consumers wish to buy.