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

question 95

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 minimised 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.

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Definitions:

Cyclohexane

A saturated hydrocarbon with the molecular formula \(C_6H_{12}\), consisting of a ring of six carbon atoms, and is often used as a nonpolar solvent in chemistry.

Alkyl Substituents

Alkyl substituents are groups of carbon and hydrogen atoms attached to a molecule, derived from alkanes by removing one hydrogen atom.

Axial

A term used in chemistry to describe positions in a molecule that are parallel to the axis of symmetry, often referring to substituents in cyclic compounds.

Energy Conformation

The arrangement of the atoms in a molecule that reflects a particular state of energy, particularly in a context where molecules may assume different shapes or orientations.