A Tax on a Good Whose Demand Is Price Elastic

question 148

True/False

A tax on a good whose demand is price elastic will be effective in discouraging consumption of that good.

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Definitions:

Miles

Units of distance measuring 5,280 feet, or approximately 1.609 kilometers, commonly used in the United States.

Dimensional-analysis

A mathematical technique used to convert one set of units to another, facilitating computations and solving problems.

Centimeters

A unit of length in the metric system, equivalent to one hundredth of a meter.

Inches

A unit of length in the imperial and US customary systems, equivalent to 1/12th of a foot.