Which Generalization Is Incorrect

question 2

Multiple Choice

Which generalization is incorrect?

• A) Given supply, the more elastic the demand for a product, the larger is the portion of an excise tax that is shifted forward to consumers.
• B) Given demand, the more elastic the supply of a product, the larger is the portion of an excise tax that is borne by producers.
• C) Given supply, the more elastic the demand for a product, the larger is the portion of an excise tax that is borne by the sellers.
• D) Given demand, the less elastic the supply of a product, the larger is the portion of an excise tax that is shifted forward to consumers.

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Definitions:

Annual Return

The percentage change in investment value over a one-year period, accounting for any dividends or interest received and capital gains or losses.

Retirement Nest Egg

A retirement nest egg is the amount of savings and investments that an individual has accumulated for their retirement years.

Compounding Of Interest

The process where interest is earned on both the initial principal and on the accumulated interest from previous periods.

Retirement

The period in an individual's life after they have ceased working, typically marked by eligibility for pensions or social security benefits.