If the Elasticity of Demand Is _____ and the Elasticity

question 26

Multiple Choice

If the elasticity of demand is _____ and the elasticity of supply is _____,tax revenue is likely to increase if the tax rate is increased.

• A)3.3;2.1
• B)3.3;0.5
• C)0.2;2.1
• D)0.2;0.5

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Definitions:

Dependent Variable

In an experimental setup, the variable being tested and measured, which is expected to change due to manipulations of the independent variable.

Independent Variable

A variable in an experiment or study that is manipulated or controlled by the researcher to observe its effect on the dependent variable.

Numerical Techniques

Computational algorithms used to solve mathematical problems, including equations, optimizations, and simulations.

Graphical Techniques

Methods used to analyze and visualize data through graphs and charts for better understanding.