If the Demand for a Product Is Elastic, Then

question 26

Multiple Choice

If the demand for a product is elastic, then

• A) a higher tax on the product will generate more tax revenue.
• B) a higher tax on the product will generate less tax revenue.
• C) total revenue will decrease as price decreases.
• D) total revenue will remain constant as price increases.

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Definitions:

Screencasts

Recordings of activity on computer displays with audio voiceover.

Audio Voiceover

A production technique where a voice—that is not part of the narrative—is used in radio, television production, filmmaking, theatre, or other presentations.

Computer Activity

Any action or task performed on a computer, ranging from browsing the internet to using software applications.

Analyze The Situation

The process of examining a situation in detail to understand its components, causes, and potential solutions.