If the Demand for a Good Is Price Elastic, Then

question 11

Multiple Choice

If the demand for a good is price elastic, then :

• A)a higher per-unit sales tax will generate more tax revenue.
• B)a higher per-unit sales tax will generate less tax revenue.
• C)changes in total per-unit sales tax revenue brought about by a price change go in the same direction as the price change.
• D)none of the above is true.

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Definitions:

Percentage Calculation

The mathematical process of determining the proportionate amount of a whole as a percentage.

Percentage Calculation

Percentage calculation involves determining the part of a whole in terms of 100, used for comparing proportions and expressing fractions.

Percentage Calculation

The mathematical process of determining the percentage amount or rate of something.

Percentage Calculation

The process of determining the relative amount of something as a percentage, which involves multiplication by 100 and adding a percent sign.