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A Demand Curve with Unit Elasticity Can Never Touch Either

question 39

True/False

A demand curve with unit elasticity can never touch either the vertical or horizontal axes.


Definitions:

Direct Taxes

Taxes levied directly on an individual's or organization's income or wealth, such as income tax or property tax.

Tax Revenue

The income that is gained by governments through taxation from individuals and businesses.

Federal Government

The national government of a federation, which holds authority over the political units constituting the federation, handling matters that affect the country as a whole.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the percentage of additional income that is paid in taxes.

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