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:

Organisations

Structured groups of people who come together to achieve specific goals, characterized by having systems of governance and processes.

Units

A measure of quantity or amount, used in various contexts such as manufacturing, accounting, or academic grading.

Teams

Groups of individuals working collaboratively towards a common goal or objective.

Departments

Subsections within an organization, each specializing in a particular area of operation or function.