Considering a Given Increase in Price Due to a Tax,the

question 108

Multiple Choice

Considering a given increase in price due to a tax,the less price elastic the demand curve is,the:

• A) larger the drop in equilibrium quantity.
• B) smaller the amount of deadweight loss created.
• C) larger the amount of deadweight loss created.
• D) more surplus that is transferred to consumers.

---

Definitions:

Hair Cells

Specialized sensory cells located in the inner ear that are essential for hearing and balance.

Semicircular Canals

Three fluid-filled tubes in the inner ear that help maintain balance by sensing rotational movements.

Misjudge Sizes

The incorrect estimation or perception of the actual size of an object, which can be due to cognitive biases or visual illusions.

Feature Detectors

Neurons in the brain that identify specific features of a stimulus, such as shape, angle, or movement.