If the Absolute Value of the Tax Elasticity of Supply

question 47

Multiple Choice

If the absolute value of the tax elasticity of supply is 2.0,a tax increase of 10 percent will decrease output by

• A)20 percent and increase tax revenues.
• B)20 percent and decrease tax revenues.
• C)5 percent and increase tax revenues.
• D)5 percent and decrease tax revenues.

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Definitions:

Qualitative Data

Non-numerical information obtained through methods like interviews, observations, or subjective assessments, focusing on experiences and interpretations.

Face-to-face Interviews

A qualitative research method involving direct, in-person conversation between an interviewer and respondent to gather data.

Qualitative Data

Non-numerical information collected through observation, interviews, or open-ended questions that provides insights into people's beliefs, experiences, and behaviors.

Lasting Impact

A durable effect or influence that persists over a long period of time.