An Excise Tax Levied on a Product Will Impose a Smaller

question 234

Multiple Choice

An excise tax levied on a product will impose a smaller relative burden on consumers (and a larger 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 elastic.
• D) either a or c is true.

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Definitions:

Gurgling

A bubbling sound made by fluid moving through air, often associated with digestion or infants.

Murmuring

Speaking or making sounds quietly and indistinctly, often conveying a sense of discontent or secrecy.

First Words

The initial set of words a child learns and uses to communicate, typically emerging around the age of 12 to 18 months.

Needs

Fundamental requirements or desires that individuals seek to fulfill, such as basic physiological needs, safety, love, and self-actualization.