The Share of the Burden of an Emissions Tax on Output

question 37

Multiple Choice

The share of the burden of an emissions tax on output borne by the consumer of the polluting output will rise as

• A)the tax rises.
• B)demand elasticity falls.
• C)demand elasticity rises.
• D)the tax falls.

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Definitions:

Psychological

relates to the mind or mental processes, especially in connection to behaviors and emotions.

Mental

Mental pertains to the mind and its processes, including thinking, feeling, and perception.

Physical

Refers to the aspects of things that are tangible and perceptible through senses.

Physiological Effect

The impact of various factors on the physical functions of an organism, often referring to the body's responses to external stimuli.