If the Elasticities of Demand for Alcohol, Tobacco and Gasoline

question 94

True/False

If the elasticities of demand for alcohol, tobacco and gasoline are low and the elasticities of supply are high, then the burden of these taxes (excise taxes) falls more heavily on buyers than on sellers.

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Definitions:

Coagulation

The process by which blood changes from a liquid to a gel, forming a blood clot.

Microorganisms

Tiny living organisms, such as bacteria, viruses, fungi, and protozoa, that can only be seen under a microscope.

Muslin

A lightweight, breathable cotton fabric used for making clothes, curtains, and other items.