Consider a Good to Which a Per-Unit Tax Applies

question 25

Multiple Choice

Consider a good to which a per-unit tax applies.The size of the deadweight that results from the tax is smaller,the

• A)less elastic is the demand for the good.
• B)less elastic is the supply of the good.
• C)smaller is the amount of the tax.
• D)All of the above are correct.

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Definitions:

NFPs

Not-For-Profit organizations, which operate for purposes other than making a profit for owners or shareholders.

Business Enterprises

Organizations engaged in commercial, industrial, or professional activities, aiming to generate profits.

Boards of Directors

A group of individuals elected to represent shareholders and oversee the management and direction of a company or organization.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that govern how financial statements should be prepared and presented globally.