For Any Given Tax,imposing a Tax in a Market with a Highly

question 110

Multiple Choice

For any given tax,imposing a tax in a market with a highly inelastic demand will:

• A) cause more deadweight loss than a market with an elastic demand.
• B) generate higher revenues than a market with an elastic demand.
• C) Both of these statements are true.
• D) Neither of these statements is true.

---

Definitions:

Margin of Error

An expression of the amount of random sampling error in a survey's results, indicating a range within which the true value lies at a certain confidence level.

Probability

The extent to which an event is likely to occur, measured by the ratio of the favorable cases to the whole number of cases possible.

Confidence Interval

A range of values, derived from sample statistics, that is believed to contain the true value of an unknown population parameter with a certain degree of confidence.

Standard Deviation

A statistic that measures the dispersion or spread of a set of data points relative to its mean.