A Higher Rate Is Most Likely to Decrease the Amount

question 222

Essay

A higher rate is most likely to decrease the amount of revenue that the government collects from an excise tax if
A.demand and supply are both very elastic.
B.demand is very elastic and supply is very inelastic.
C.demand is very inelastic and supply is very elastic.
D.demand and supply are both very inelastic.

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Definitions:

Defense Mechanisms

Psychological strategies employed by individuals to protect themselves from unacceptable thoughts or feelings.

Mental Health

A state of well-being in which an individual realizes his or her own abilities, can cope with the normal stresses of life, work productively, and is able to make contributions to his or her community.

Libido

In psychoanalytic theory, a term referring to the energy derived from sexual instincts and desires that drive individuals in their actions and behaviors.

Psychic Energy

A concept in psychoanalytic theory referring to the force behind human drives, desires, and mental processes.