An Excise Tax Levied on a Product Will Impose a Larger

question 229

Multiple Choice

An excise tax levied on a product will impose a larger relative burden on consumers (and a smaller relative burden on sellers) when

• A) the supply of the product is relatively inelastic.
• B) the supply of the product is relatively elastic.
• C) the demand for the product is relatively inelastic.
• D) either b or c is true

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Definitions:

Dehydration

The excessive loss of body water, impairing normal physiological functions.

Catabolic

Metabolic pathways that break down molecules into smaller units, releasing energy.

Hydrolysis

A chemical reaction in which water breaks bonds between molecules, often leading to the decomposition of complex molecules.

Anion

A negatively charged ion, which moves toward the anode (positive electrode) during electrolysis.