"For a Given Supply Curve, the Excess Burden of a Tax

question 172

Multiple Choice

"For a given supply curve, the excess burden of a tax will be greater when the demand for a product is less elastic than when the demand is more elastic." This statement is

• A)correct.
• B)incorrect because the incidence of the tax, not the burden of the tax, is affected by the elasticity of demand.
• C)incorrect. When demand is less elastic, the burden of the tax is smaller than when the demand is more elastic.
• D)incorrect. The statement confuses demand with quantity demanded.

---

Definitions:

Communal Space

Shared public spaces within a community where members can gather, interact, and engage in activities together, such as parks, community centers, and shared gardens.

Nonverbal Signal

A form of communication without the use of words, including gestures, facial expressions, body language, and posture, which can send cues regarding feelings or intentions.

Anger

A strong feeling of annoyance, displeasure, or hostility, often a response to perceived wrongs or frustrations.

Hostility

Expressing aggression or enmity towards someone or something; often characterized by antagonistic attitudes or actions.