Consider a 10% Excise Tax That Is Similarly Applied to Good

question 28

Multiple Choice

Consider a 10% excise tax that is similarly applied to good X,which has a price elasticity of 2.7,and to good Y,that has a price elasticity of 0.6.We can predict that the excess burden of this tax in the market for good X will be ________ the excess burden in the market for good Y.

• A)no larger than
• B)equal to
• C)smaller than
• D)larger than
• E)2.1 times the size of

---

Definitions:

Avoidant Attachment

Feeling discomfort in being close to other people, and distrustful and fearful of being dependent.

Romance

An emotional and affectionate feeling or state of being that often involves love and attraction between partners.

Merge Completely

To combine or unite fully into a single entity or whole without any part left out.

Extradyadic Sex

Sexual activity that occurs outside of a committed relationship, often considered a form of infidelity.