"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.

---

Definitions:

Response Variable

In statistics and research, the variable that is measured to determine the effect of one or more explanatory variables.

Royal Flush

The highest-ranking hand in poker, consisting of the Ace, King, Queen, Jack, and Ten of the same suit.

Full House

In poker, a hand consisting of three cards of one rank and two cards of another; alternatively, a situation in which a venue is filled to capacity.

Multiple-choice Questions

A test format that presents a question followed by several possible answers, only one of which is correct.