In Which of the Following Cases Is It Most Likely

question 44

Multiple Choice

In which of the following cases is it most likely that an increase in the size of a tax will decrease tax revenue?

• A)The price elasticity of demand is small,and the price elasticity of supply is large.
• B)The price elasticity of demand is large,and the price elasticity of supply is small.
• C)The price elasticity of demand and the price elasticity of supply are both small.
• D)The price elasticity of demand and the price elasticity of supply are both large.

Assess the role of workforce skills and core competencies in achieving competitive advantage.

Comprehend the financial and operational considerations in managing labor costs.

Acknowledge the significance of equitable labor practices on organizational reputation and employee satisfaction.

Understand how to calculate percentages and cumulative percentages in frequency distribution tables.

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Definitions:

Subsidy

A financial contribution granted by the government or a public body to support a business or economic sector.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Tax

A compulsory financial charge imposed by a government on individuals, corporations, or other entities to fund government spending and public services.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand.