Examlex

Solved

If Demand Is Extremely Elastic, It Is Likely That _____

question 200

Multiple Choice

If demand is extremely elastic, it is likely that _____ will bear most of the burden of a tax and that the deadweight loss will be relatively _____.


Definitions:

Productive Efficiency

A situation in which a good or service is produced at the lowest possible cost.

Monopolistic Producer

A single producer that has control over the market for a product or service, often characterized by a lack of close substitutes.

Competitive Firm

A company that operates in a market with many competitors, where prices are determined by supply and demand.

Unit Cost

The expenditure associated with creating, storing, and selling a single unit of a particular product or service by a business.

Related Questions