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:

Medication Interactions

The effects, generally unintended, that may occur when a medication is taken in combination with other drugs, foods, or substances.

Fluid Accumulation

The build-up of fluids in body tissues or cavities, which can be symptomatic of various health conditions and lead to swelling or other complications.

Kidney Disease

A medical condition characterized by the gradual loss of kidney function over time, which can lead to the accumulation of waste products in the body.

Thyroid Disease

A medical condition that affects the function of the thyroid gland, which can lead to hormone imbalances impacting various bodily functions.