A State Government Seeking to Increase Its Excise-Tax Revenues Is

question 140

True/False

A state government seeking to increase its excise-tax revenues is more likely to increase the tax rate on items with elastic demand.

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Definitions:

Lowest Price

The minimum price at which a product or service is offered in the market.

Short Run

A period in economic theory during which at least one input is fixed while others are variable.

Short Run

A period in economics during which the quantities of some inputs, typically capital, cannot be changed, affecting how firms adjust production levels.

Long Run

A period of time in economics during which all inputs, including capital and labor, can be adjusted, and all markets are in equilibrium.