Price Elasticities of Demand and Supply Will NOT Play a Major

question 134

Multiple Choice

Price elasticities of demand and supply will NOT play a major role in determining:

• A)the ability of policy makers to change consumption of a good via the imposition of an excise tax.
• B)the deadweight loss arising from the imposition of an excise tax.
• C)the burden of the tax on consumers and producers.
• D)administrative costs of imposing an excise tax.

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Definitions:

Experimental Manipulation

The alteration of an independent variable to determine its effect on a dependent variable within an experiment.

Third-variable Problem

A scenario in research where an unmeasured variable causes or influences both variables of interest, potentially misleading interpretations of a correlation or relationship.

Causal Relationship

A connection between two events or states where one event is understood to be a direct result of the other.

Confounding Variable

An external variable that influences both the dependent and independent variables in a study, potentially skewing the results.