If Demand and Supply Are Both Very Elastic,a Decrease in the Rate

question 80

Multiple Choice

If demand and supply are both very elastic,a decrease in the rate of an excise tax will likely:

• A)decrease government revenue.
• B)increase government revenue.
• C)not affect government revenue.
• D)make demand and supply both inelastic.

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Definitions:

Relational

Pertaining to the establishment and maintenance of meaningful relationships between individuals or groups.

Horizontal Communication

The exchange of information between peers within the same level of an organization, facilitating collaboration and team coordination.

Staff

Refers to all the employees of an organization or a specific group within.

Coworkers

Individuals working together in the same organization, sharing responsibilities or projects.