The More Elastic the Supply of a Product, the More

question 240

Multiple Choice

The more elastic the supply of a product, the more likely it is that the burden of a tax will

• A) fall on sellers.
• B) fall on buyers.
• C) fall equally on both buyers and sellers.
• D) be borne by the public sector, and not by market participants.

---

Definitions:

Coefficient Of Determination

A measure, usually represented as R^2, that shows the proportion of the variance in the dependent variable that is predictable from the independent variable(s).

Variance

A measurement of the spread between numbers in a data set, signaling how far each number in the set is from the mean.

MSE

Mean Squared Error, a measure of the average squared differences between the estimated values and the actual value, indicating the quality of an estimator.

SSE

Sum of Squares due to Error, a measure used in statistical analysis to quantify the discrepancy between the observed and predicted data values.