If Demand and Supply Are Both Very Inelastic,a Decrease in the Rate

question 194

Multiple Choice

If demand and supply are both very inelastic,a decrease in the rate of an excise tax will likely:

• A)decrease government revenue.
• B)increase government revenue.
• C)not affect government revenue.
• D)make demand and supply both elastic.

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Definitions:

Associative Learning

A learning process by which a subject links two stimuli or a behavior and a consequence.

Operant Conditioning

A learning principle where behaviors are modified by the consequences that follow them, with rewards increasing desired actions and punishments reducing their occurrence.

Predictability

The ability to accurately forecast future events or behaviors based on patterns or prior knowledge.

Rescorla And Wagner

Psychologists who developed a model explaining how the strength of a stimulus-response association is determined in classical conditioning.