If the Elasticity of Demand Is Much Greater Than the Elasticity

question 46

Multiple Choice

If the elasticity of demand is much greater than the elasticity of supply,an excise tax levied on the suppliers will

• A)cause the suppliers to incur a greater burden of the tax than demanders
• B)cause the demanders to incur a greater burden of the tax than suppliers
• C)the burden of the tax will be shared equally between the suppliers and the demanders
• D)cause the entire burden of the tax to rest on the demanders
• E)Without more information as to the amount of the excise tax,who will incur a greater burden will be unclear

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Definitions:

Behavior Therapy

A type of psychotherapy that focuses on changing unwanted behaviors through reward systems, desensitization, and other techniques based on learning principles.

Hyperactive Behavior

Excessively active actions or movements, often associated with attention deficit hyperactivity disorder (ADHD).

Modifying Behavior

The process of changing or adapting one's actions or reactions through various techniques, such as learning, therapy, or conditioning.

Desirable Behavior

Actions or reactions considered to be favorable or beneficial within a societal or cultural context.