The Greater the Elasticity of Supply of and Demand for a Good

question 151

Multiple Choice

The greater the elasticity of supply of and demand for a good, the

• A) smaller will be the efficiency loss of an excise tax on the good.
• B) more likely the good will be a public good rather than a private good.
• C) larger will be the efficiency loss of an excise tax on the good.
• D) larger will be the proportion of an excise tax on the good that will be shifted forward to consumers.

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Definitions:

Thick Mucus

A denser form of mucus, often produced in the body's respiratory or digestive systems as a response to infection or irritation.

Pancreas

An organ in the digestive and endocrine system that produces enzymes and hormones, including insulin, to regulate blood sugar levels.

Meiosis

A type of cell division that results in four daughter cells each with half the number of chromosomes of the parent cell, critical for sexual reproduction.

Sperm Cell

The male reproductive cell, capable of fertilizing an egg to produce offspring.