If the Absolute Value of the Tax Elasticity of Supply

question 78

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.

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Definitions:

Property Requirement

A historical legal or political stipulation that only individuals who own property or meet certain wealth criteria are eligible to vote or hold public office.

International Slave Trade

refers to the historical trade of enslaved people across international borders, particularly from Africa to the Americas, from the 16th to the 19th century.

Constitution

The basic rules and long-standing customs by which a government or another entity operates.

South Carolina

A state in the southeastern United States, known for its historic cities, subtropical beaches, and as being a site of significant Civil War battles.