If the Absolute Value of the Tax Elasticity of Supply

question 110

Multiple Choice

If the absolute value of the tax elasticity of supply is 0.5,a tax increase of 10 percent will

• A)Increase output by 5 percent and decrease tax revenues.
• B)Increase output by 20 percent and decrease tax revenues.
• C)Decrease output by 5 percent and increase tax revenues.
• D)Decrease output by 5 percent and decrease tax revenues.

---

Definitions:

Carbohydrates

Essential nutrients found in foods and drinks that provide energy for the body, including sugars, starches, and fibers.

Physical Activity

Any physical action generated by the contraction of skeletal muscles that leads to the consumption of energy, encompassing activities performed during work, play, household tasks, commuting, and leisure activities.

ACSM Guidelines

Recommendations set forth by the American College of Sports Medicine regarding physical activity and exercise for health and fitness.

Muscle Fitness Training

Exercise routines designed to increase muscle strength, endurance, and mass through resistance and weight training.