"For a Given Supply Curve, the Excess Burden of a Tax

question 172

Multiple Choice

"For a given supply curve, the excess burden of a tax will be greater when the demand for a product is less elastic than when the demand is more elastic." This statement is

• A)correct.
• B)incorrect because the incidence of the tax, not the burden of the tax, is affected by the elasticity of demand.
• C)incorrect. When demand is less elastic, the burden of the tax is smaller than when the demand is more elastic.
• D)incorrect. The statement confuses demand with quantity demanded.

Understand the impact of genuine agreement on the enforceability of a contract.

Identify and distinguish between unilateral and bilateral mistakes in contracts.

Recognize the role of misrepresentation and fraud in undermining the validity of a contract.

Understand the concept of material facts and their significance in contract law.

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Definitions:

Economic Activity

Any action that involves the production, distribution, and consumption of goods and services within an economy.

Fallacy of Composition

The erroneous belief or argument that what is true for a part is necessarily true for the whole, or that what holds for individual members of a group must necessarily hold for the group as a whole.

Nearest Exit

The closest point of egress from a building, vehicle, or area, often highlighted as part of safety protocols.

Large Audience

A substantial number of viewers, listeners, or spectators gathered for an event or through a broadcast media platform.