A(n)________ in the Elasticity of Supply or Demand in a Market

question 36

Multiple Choice

A(n) ________ in the elasticity of supply or demand in a market for a good that is taxed would tend to ________ tax revenue from that tax.

• A) decrease; have no effect on
• B) decrease; decrease
• C) increase; have no effect on
• D) increase; decrease
• E) increase; increase

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Definitions:

Price/Earnings Ratio

A ratio for valuing a company that measures its current share price relative to its per-share earnings.

Equity-Financed

Refers to the method of funding a company's operations, expansion, or projects using the capital raised through the sale of equity, rather than using debt.

Total Earnings

The sum of all income and revenue generated by a business or individual within a specific period.

Shares Outstanding

Refers to all shares currently owned by shareholders, company insiders, and investors in the public domain, representing ownership in a company.