For a Given Elasticity of Demand,the Less Elastic the Supply,the

question 108

Multiple Choice

For a given elasticity of demand,the less elastic the supply,the

• A) larger the deadweight loss from a tax.
• B) larger the share of a tax paid by the sellers.
• C) greater the burden on the government from a tax.
• D) greater is the excess burden from a tax.
• E) larger the share of a tax paid by the buyers.

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Definitions:

Compounded Semiannually

A method of computing interest where the interest is added to the principal twice a year, leading to interest being earned on interest from the next period.

Semiannual Compounding

Refers to the process of applying interest to a principal amount twice a year, resulting in interest being calculated on previously earned interest as well as the principal.

Calgary Real Estate Board

An industry association in Calgary, Alberta, that provides resources and support to real estate professionals.

Compound Increase

An increase where interest is calculated on the initial principal and also on the accumulated interest of previous periods.