For a Given Supply Curve, How Does the Elasticity of Demand

question 95

Multiple Choice

For a given supply curve, how does the elasticity of demand affect the burden of a tax imposed on a product?

• A)The excess burden of the tax will be minimised when the demand is unit-elastic.
• B)The excess burden of the tax will be greater when the elasticity of supply is greater than the elasticity of demand.
• C)The excess burden of the tax will be greater when the demand is less elastic than when it is more elastic.
• D)The excess burden of the tax will be greater when the demand is more elastic than when it is less elastic.

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Definitions:

Skills

Refers to the learned abilities or expertise that an individual possesses, which enable them to perform tasks or jobs effectively.

Labour Market

The supply and demand for labor, where employers seek to hire workers and individuals seek employment.

HR Forecasting Process

The method used by human resources to estimate the future demand for and supply of employees needed to ensure the company's operations run smoothly.

Source of Human Capital

Origin from which an organization acquires its employees' knowledge, skills, and abilities, contributing to its competitiveness and success.