-Refer to the Figure Above

question 3

Multiple Choice

-Refer to the figure above. If R3 opened, Vout would

• A)increase.
• B)decrease.
• C)remain the same.
• D)distort.

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Definitions:

Tax Burden

The total amount of taxes that individuals or businesses are required to pay to government entities, often expressed as a percentage of income or profit.

Elasticity

A measure in economics to show how the quantity demanded or supplied of a good or service responds to a change in price.

Price Ceiling

A legally imposed maximum price on a good or service, intended to keep prices low for buyers.

Shortage/Surplus

A market condition where the quantity demanded is greater than the quantity supplied (shortage) or the quantity supplied is greater than the quantity demanded (surplus).