Why Does Werther's Original Candy Tend to Have an Elastic

question 92

Multiple Choice

Why does Werther's Original candy tend to have an elastic demand

• A)because the candy market is too broadly defined
• B)because there are many close substitutes for Werther's
• C)because Werther's Original candy is considered by some to be a necessity
• D)because it is usually eaten quickly and therefore the time horizon is short

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Definitions:

Tax Evasion

The illegal practice of not paying taxes by not reporting income, reporting expenses not legally allowed, or by not paying taxes owed.

Corporate Profits Tax

A tax imposed on the income or profit earned by corporations.

Equilibrium

A state of balance or stability within a system, where all forces acting upon the system are equal and opposite, leading to no net change.

Tax Incidence

The study of who ultimately bears the burden of a tax, which can differ from who the tax is initially levied upon.