The More Elastic the Demand for a Good

question 54

Multiple Choice

The more elastic the demand for a good,

• A)the more of an excise tax is that is collected by sellers
• B)the more of an excise tax that is paid by buyers
• C)the more an excise that is paid by sellers
• D)the more elastic the supply of that good
• E)the smaller the burden of a tax on that good

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Definitions:

Profit (Loss)

The financial result of operations, where profit indicates revenue exceeds expenses, and loss indicates expenses exceed revenue.

Sale Price

The final price of a product or service after any discounts or promotions have been applied.

Net Profit

The total earnings after all expenses and taxes have been subtracted from revenue.

Overhead Expenses

costs related to the day-to-day running of a business but not directly tied to producing goods or services.