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:

Moderate Association

A statistical term describing a relationship between two variables that is not weak, but not strongly predictive either, often indicated by a correlation coefficient that is neither close to 0 nor to 1.

Moderately Strong Association

A statistical term indicating that there is a noticeable but not overwhelming relationship between two variables.

Little or No Association

A term used in statistics to describe a situation where there is minimal or no statistical relationship between two variables.

Nonlinear

Describing a process, relation, or equation in which there is not a straight line relationship between variables.