In Which of the Following Cases Will an Increase in the Tax

question 226

Essay

In which of the following cases will an increase in the tax rate most likely increase tax revenue?
A.The elasticity of demand is 3.3 and the elasticity of supply is 2.1.
B.The elasticity of demand is 3.3 and the elasticity of supply is 0.5.
C.The elasticity of demand is 0.2 and the elasticity of supply is 2.1.
D.The elasticity of demand is 0.2 and the elasticity of supply is 0.5.

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Definitions:

Industrialization

The process by which an economy is transformed from primarily agricultural to one based on the manufacturing of goods.

Immigrants

Individuals who move from one country to another with the intention of settling in the new country, often in search of better living conditions or employment opportunities.

Allophones

Individuals whose first language is neither English nor French, referring to the linguistic diversity in countries like Canada.

Postsecondary Education

Education that occurs after high school, including programs at colleges, universities, and vocational schools.