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:

Equal Payments

Regular payments of the same amount over a specified period, often used in loan repayment or investment plans.

Compounded Monthly

Interest calculated on the principal sum and also on the accumulated interest of previous periods of a deposit or loan, compounded every month.

Equal Payments

Payments that are the same in amount, typically referring to installments paid over a certain period of time.

Outstanding Balance

the amount of money that is still owed or remains unpaid on a loan, credit card, or another financial obligation.