If an Increase in the Price of a Product from $1

question 61

Multiple Choice

If an increase in the price of a product from $1 to $2 per unit leads to a decrease in the quantity demanded from 100 to 80 units,then the demand is _____

• A)elastic.
• B)inelastic.
• C)unit elastic.
• D)perfectly elastic.
• E)perfectly inelastic.

Identify the principle responsibilities of government in managing tax revenues and expenditures.

Distinguish between the efficiency loss of a tax and the tax revenue collected by the government.

Comprehend how taxes impact income distribution and inequality.

Understand how the elasticity of demand and supply affects the burden of a tax.

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Definitions:

National Government

signifies the central government of a country which holds the authority to govern and make decisions for the nation as a whole.

Federal Energy Regulatory Commission

A U.S. government agency that regulates the interstate transmission of electricity, natural gas, and oil.

Transportation

The movement of goods or people from one location to another, facilitated by various modes such as road, rail, air, or sea.

Wholesale Price

The cost of goods sold in large quantities primarily to retailers or other merchants, rather than directly to consumers.