For a Given Supply Curve, How Does the Elasticity of Demand

question 168

Multiple Choice

For a given supply curve, how does the elasticity of demand affect the burden of a tax imposed on a product?

• A)The excess burden of the tax will be minimized when the demand is unit elastic.
• B)The excess burden of the tax will be greater when the elasticity of supply is greater than the elasticity of demand.
• C)The excess burden of the tax will be greater when the demand is less elastic than when it is more elastic.
• D)The excess burden of the tax will be greater when the demand is more elastic than when it is less elastic.

---

Definitions:

Global South

Poor countries in the southern hemisphere (previously referred to as the Third World).

Water Related

Pertaining to or connected with water, including its management, conservation, and issues surrounding its availability, quality, and use.

2008 Olympic Games

An international multi-sport event held in Beijing, China, showcasing athletes from around the world competing in various sports.

Environmental Issue

Any problem with the planet's systems (air, water, soil, etc.) that has harmful effects on people, animals, or the natural environment.