If the Absolute Value of the Tax Elasticity of Supply

question 107

Multiple Choice

If the absolute value of the tax elasticity of supply is 0.8,a tax decrease of 10 percent will

• A)Increase output by 8 percent and decrease tax revenues.
• B)Increase output by 12.5 percent and increase tax revenues.
• C)Decrease output by 12.5 percent and increase tax revenues.
• D)Decrease output by 8 percent and increase tax revenues.

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Definitions:

Drosophila Melanogaster

Drosophila Melanogaster, commonly known as the fruit fly, is a widely used model organism in genetics, developmental biology, and related fields.

Photosynthetic Organisms

Living entities that can convert light energy, usually from the sun, into chemical energy through the process of photosynthesis.

Primary Endosymbiosis

A symbiotic relationship in which a eukaryotic cell engulfs a prokaryote, leading to the evolution of important cell organelles, such as mitochondria and chloroplasts.

Secondary Endosymbiosis

An evolutionary process by which a eukaryotic cell engulfs another eukaryotic cell, leading to a symbiotic relationship.