Examlex
Evaluate.
Inelastic Demand
Inelastic demand refers to a market condition where the quantity demanded of a good or service changes very little in response to price changes.
Excise Tax
A tax on the production, sale, or consumption of a particular good or service within a country.
Efficiency
The optimal use of resources to achieve the best possible outcome or output with the least waste of time and effort.
Distort Incentives
A situation where economic or policy mechanisms result in unintended or undesirable behaviors, often leading to inefficiencies.
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