Suppose a Tax of $1 Per Unit Is Imposed on a Good.The

question 13

Multiple Choice

Suppose a tax of $1 per unit is imposed on a good.The more elastic the demand for the good,other things equal,

• A)the larger is the decrease in quantity demanded as a result of the tax.
• B)the smaller is the tax burden on buyers relative to the tax burden on sellers.
• C)the larger is the deadweight loss of the tax.
• D)All of the above are correct.

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Definitions:

Regulations

Rules or directives made and maintained by an authority to regulate behavior; they can apply to individuals, industries, and organizations.

Functional Structures

An organizational structure where the company is divided into departments based on specific functions or roles, such as marketing, finance, or human resources, enhancing specialization and efficiency.

Organic

Pertains to living systems or compounds containing carbon, or in business, refers to growth achieved through internal processes.

Formal

Following or conforming to established rules, conventions, or ceremonies.