The More Price-Elastic the Demand, the Larger the Increase in Tax

question 94

True/False

The more price-elastic the demand, the larger the increase in tax revenues resulting from a per-unit tax on a good.

---

Definitions:

Intelligence

A general mental capability that involves the ability to reason, plan, solve problems, think abstractly, comprehend complex ideas, learn quickly, and learn from experience.

Semanticity

The quality of language that allows it to convey meaning through the use of symbols with agreed-upon interpretations.

Instinct

An innate, typically fixed pattern of behavior in animals that is responsive to specific stimuli and critical for survival.

Memory

The processes by which information is encoded, stored, and retrieved.