A(n)________ in the Elasticity of Supply or Demand in a Market

question 67

Multiple Choice

A(n) ________ in the elasticity of supply or demand in a market for a good that is taxed would tend to ________ deadweight loss from that tax.

• A) decrease; increase
• B) increase; decrease
• C) increase; have no effect on
• D) decrease; have no effect on
• E) increase; increase

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Definitions:

EPS

Earnings Per Share, a measure of a company's profitability calculated by dividing its net earnings by the number of outstanding shares.

Earnings Per Share

A company's net income divided by the number of its outstanding shares, indicating the company's profitability on a per-share basis.

Debt

An amount of money borrowed by one party from another, typically repaid with interest.

Capital Structure

Refers to the way a corporation finances its assets through a combination of debt, equity, or hybrid securities.