"For a Given Supply Curve, the Excess Burden of a Tax

question 172

Multiple Choice

"For a given supply curve, the excess burden of a tax will be greater when the demand for a product is less elastic than when the demand is more elastic." This statement is

• A)correct.
• B)incorrect because the incidence of the tax, not the burden of the tax, is affected by the elasticity of demand.
• C)incorrect. When demand is less elastic, the burden of the tax is smaller than when the demand is more elastic.
• D)incorrect. The statement confuses demand with quantity demanded.

---

Definitions:

Satellite Image

Image taken by an artificial satellite and generally depicting the types of materials on the surface of Earth or another planetary object.

Caribbean

A region consisting of the Caribbean Sea, its islands, and the surrounding coasts, noted for its distinctive cultural, historical, and geological aspects.

Violent Tornados

Extremely intense tornadoes characterized by high wind speeds and the potential for significant destruction.

Global Warming

The long-term rise in Earth's average surface temperature, primarily due to human activities releasing greenhouse gases.