If Demand Is Elastic, a Tax Increase Will Shift the Demand

question 15

True/False

If demand is elastic, a tax increase will shift the demand curve to the right.

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Definitions:

Diversification Strategy

An approach to business growth through increasing the variety of products, services, or markets served.

Different Business Areas

Various functional sectors within a company, such as finance, marketing, operations, or human resources, each responsible for specific tasks.

Diversification

A strategy that involves entering into new markets or industries or creating new products to spread and reduce risks.

New

Recently developed, created, or having started to exist not long ago.