Consider a Good to Which a Per-Unit Tax Applies

question 25

Multiple Choice

Consider a good to which a per-unit tax applies.The size of the deadweight that results from the tax is smaller,the

• A)less elastic is the demand for the good.
• B)less elastic is the supply of the good.
• C)smaller is the amount of the tax.
• D)All of the above are correct.

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Definitions:

Year 2

A term that indicates the second year in a series, often used in financial and operational planning to distinguish between different time periods.

Accounts Receivable Turnover

A financial ratio that measures how many times a company can turn its accounts receivable into cash within a period.

Year 2

A reference to the second year of operation, study, or observation, the specifics of which depend on the context.

Current Ratio

An indicator of how well a company can fulfill its short-term financial obligations within a year, calculated by the division of current assets by current liabilities.