Price Elasticities of Demand and Supply Will NOT Play a Major

question 134

Multiple Choice

Price elasticities of demand and supply will NOT play a major role in determining:

• A)the ability of policy makers to change consumption of a good via the imposition of an excise tax.
• B)the deadweight loss arising from the imposition of an excise tax.
• C)the burden of the tax on consumers and producers.
• D)administrative costs of imposing an excise tax.

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Definitions:

Acetylcholine

A neurotransmitter in both the peripheral and central nervous systems that is involved in muscle activation, memory formation, and learning.

Neurotransmitter

Chemical messengers that transmit signals across synapses from one neuron to another, facilitating communication within the nervous system.

Voluntary Muscles

Muscles that can be consciously controlled to perform movements, as opposed to involuntary muscles, such as those in the heart or digestive system.

Agonist

An agonist is a chemical or drug that binds to receptors in the brain and activates them, often mimicking the action of naturally occurring substances.