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.

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Definitions:

Career Paths

The progression of job roles or occupations that an individual may follow during their working life.

Documentary

A nonfictional film or television program that provides a factual record or report on a particular subject.

Non-Hispanic White

A demographic group often used in the United States for those who identify as White and do not have a Hispanic or Latino cultural background.

African American

A term used to describe African descent individuals, particularly in the United States, who have a family history or cultural lineage linked to Africa.