Suppose a Tax of $1 Per Unit Is Imposed on a Good.The

question 13

Multiple Choice

Suppose a tax of $1 per unit is imposed on a good.The more elastic the demand for the good,other things equal,

• A)the larger is the decrease in quantity demanded as a result of the tax.
• B)the smaller is the tax burden on buyers relative to the tax burden on sellers.
• C)the larger is the deadweight loss of the tax.
• D)All of the above are correct.

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Definitions:

Sodium Chloride

A chemical compound commonly known as table salt, consisting of sodium and chlorine atoms, used extensively in food preparation and preservation.

Chloride Ion

A negatively charged ion (Cl-) that is an essential electrolyte found in all body fluids, important for maintaining fluid balance and electrical neutrality.

Dissociation

A mental process involving a lack of connection in a person's thoughts, memory, and sense of identity.

Sodium Ion

An essential electrolyte in the body that helps regulate water balance, nerve impulses, and muscle function.