When the Demand for a Good Is Relatively More Elastic

question 85

Multiple Choice

When the demand for a good is relatively more elastic than its supply, _____.

• A)the proportion of the tax on the good paid by the consumers is greater than that paid by the producers
• B)the proportion of the tax on the good paid by the producers is greater than that paid by the consumers
• C)government will impose a binding price ceiling
• D)government will impose a binding price floor
• E)government will impose a price ceiling that is not binding

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Definitions:

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A statistical method used to model and analyze the relationship between a dependent variable and one or more independent variables.