The More Price Elastic the Demand Curve, the More a Competitive

question 10

True/False

The more price elastic the demand curve, the more a competitive market will over-produce (relative to the efficient level) in the presence of a negative externality.

---

Definitions:

Needy Families

Households with insufficient income or resources to meet basic living expenses.

Supplemental Security Income

A United States government program that provides financial aid to elderly, blind, or disabled individuals with little or no income to help them meet basic needs for food, clothing, and shelter.

Negative Income Tax

is a proposed system of income support that involves the government providing financial assistance to individuals earning below a certain threshold.

Tax Liability

The total amount of tax that an individual, corporation, or other entity is obligated to pay to tax authorities, based on income, property value, or other taxable attributes.