A Decrease in the Size of a Tax Is Most

question 23

Multiple Choice

A decrease in the size of a tax is most likely to increase tax revenue in a market with

• A)elastic demand and elastic supply.
• B)elastic demand and inelastic supply.
• C)inelastic demand and elastic supply.
• D)inelastic demand and inelastic supply.

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Definitions:

Eyes on the Prize

Maintaining focus on the ultimate goal or objective, despite challenges or distractions.

Groupthink

A phenomenon where the desire for group consensus and cohesiveness leads to poor decision-making processes and outcomes.

Maintaining Harmony

The act of keeping relationships or environments peaceful and cooperative.

Critically Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.