A Decrease in the Size of a Tax Is Most

question 23

Multiple Choice

A decrease in the size of a tax is most likely to increase tax revenue in a market with

• A)elastic demand and elastic supply.
• B)elastic demand and inelastic supply.
• C)inelastic demand and elastic supply.
• D)inelastic demand and inelastic supply.

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Definitions:

Raw Materials

Fundamental substances or components used in the initial stages of the manufacturing process to produce goods.

Cash Disbursements

The payment of cash by a business for expenses, purchases, or obligations.

Sales

The total amount of revenue generated from selling goods or services over a given period.

Retained Earnings

Retained earnings represent the portion of a company's net income that is kept within the company after dividends are paid to shareholders, used for reinvestment or debt payment.