Suppose Demand Has Price Elasticity of 1 Everywhere and the Industry

question 5

True/False

Suppose demand has price elasticity of 1 everywhere and the industry is perfectly competitive with identical firms.In the long run, tax revenue increases as tax rates increase.

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Definitions:

Algae

An informal group of unicellular, or simple multicellular, photosynthetic protists that are important producers in aquatic ecosystems.

Thylakoid Membranes

Membrane-bound compartments inside chloroplasts and cyanobacteria where photosynthesis takes place.

ATP

Adenosine triphosphate, a molecule that stores and transfers energy within cells.

Noncyclic Electron Transport

A pathway in photosynthesis where electrons flow linearly from water to NADP+, producing oxygen and NADPH.