The Elasticities of Supply and Demand Are Important in Determining

question 93

Multiple Choice

The elasticities of supply and demand are important in determining the distribution of tax burden because they

• A) measure how much consumers are willing to pay or how much firms must receive in order to produce.
• B) reflect who actually pays the tax out of pocket.
• C) measure how responsive producers and consumers are to a change in price.
• D) reflect how much tax revenue is collected from the tax.
• E) determine who is legally responsible for remitting funds to the government.

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Definitions:

Drive-Reduction Theory

A theory of motivation suggesting that the motivation arises from biological needs that demand satisfaction, driving individuals to reduce the state of tension through specific behaviors.

Motivated Behavior

Actions that are driven by internal or external forces aiming to satisfy specific needs or achieve particular goals.

Sexual Arousal

A physiological and psychological state of excitedness and readiness for sexual activity, often accompanied by physical changes.

Biological Influences

Factors at the biological level that affect behavior, cognition, emotions, and health.