When the Demand for a Product Is More Elastic Than

question 198

Multiple Choice

When the demand for a product is more elastic than the supply,

• A)consumers pay the majority of the tax on the product.
• B)consumers pay the entire tax on the product.
• C)firms pay the majority of the tax on the product.
• D)firms pay the entire tax on the product.

---

Definitions:

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world’s nations, including all of the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Productivity Growth Rate

The rate at which the output of goods and services per unit of input (such as labor) increases over a specific period.

Output Per Capita

The total value of all goods and services produced by an economy in a given period divided by the population size.

Per Capita Output

A measure of a country's economic output that divides the total gross domestic product (GDP) by its population.