The More Elastic Are Supply and Demand in a Market

question 167

True/False

The more elastic are supply and demand in a market, the greater are the distortions caused by a tax on that market, and the more likely it is that a tax cut in that market will raise tax revenue.

---

Definitions:

Contingency Management

A behavior change technique that reinforces positive behaviors with rewards to increase the likelihood of their occurrence.

Behavioral Activation

Behavioral Activation is a therapy approach that focuses on engaging individuals in activities that are aligned with their values and interests to combat depression.

Biofeedback

A technique that uses electronic monitoring to convey information about physiological processes, allowing individuals to gain control over bodily functions that are normally automatic, such as heart rate.

Progressive Muscle Relaxation

A relaxation technique involving tension and relaxation of various muscle groups to reduce stress and anxiety.