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:

Polypropylene

A thermoplastic polymer used in a wide variety of applications, known for its toughness, flexibility, and resistance to various chemical solvents, acids, and bases.

Millad NX8000

A highly efficient clarifier used in the production of transparent polypropylene plastics, enhancing clarity and physical properties.

Acetonide

An acetonide is a ketal formed from the diol (a molecule with two hydroxyl groups) and acetone, often used as a protective group in organic synthesis.

1,2,4,5-tetrahydroxybenzene

A benzene ring substituted with four hydroxyl groups at the 1, 2, 4, and 5 positions, known for participating in complex chemical reactions.