An Excise Tax Levied on a Product Will Impose a Smaller

question 234

Multiple Choice

An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger relative burden on sellers) when

• A) the supply of the product is relatively inelastic.
• B) the supply of the product is relatively elastic.
• C) the demand for the product is relatively elastic.
• D) either a or c is true.

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Definitions:

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Stressed

A physical or psychological state resulting from circumstances that feel challenging or threatening.

Experiment

A method of research in the sciences or social sciences in which variables are manipulated to observe the effect on some behavior or mental process.

Stress

The body’s response to any demand or challenge, which can be physical, mental, or emotional, and influences the state of both mental and physical health.