If You Want to Reduce the Inefficiency Costs of Taxation,you

question 286

Multiple Choice

If you want to reduce the inefficiency costs of taxation,you should devise taxes to fall on goods for which the supply is _____ and the demand is _____.

• A)elastic;elastic
• B)inelastic;inelastic
• C)elastic;inelastic
• D)inelastic;elastic

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Definitions:

Refund Liability

An obligation recorded by a business to return funds to a customer for returned or unsatisfactory goods or services.

Deferred Revenue

Income received in advance for products or services which is recorded as a liability until it is earned.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reversal of revenue previously recognized.

Purchase Discount

A reduction in the purchase price, offered by the seller to the buyer, as an incentive for early payment.