If Demand Is More Elastic, the Portion of an Excise

question 44

Multiple Choice

If demand is more elastic, the portion of an excise tax borne by a buyer will

• A)increase.
• B)decrease.
• C)be unchanged.
• D)increase for normal goods, decrease for inferior goods.

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Definitions:

Utility Function

A mathematical representation that describes how consumers allocate their spending to maximize satisfaction or utility from goods and services.

Course Grade

The evaluation or assessment of a student's performance in a course, typically represented as a letter or number.

Min/Max Function

A mathematical function that identifies the minimum or maximum value within a particular set of data or input.

Same Income

A scenario in which two or more entities earn or receive an identical amount of money.