Other Things Being Equal, the Less Elastic Demand Is

question 14

Multiple Choice

Other things being equal, the less elastic demand is:

• A)​the lower the deadweight loss is resulting from the imposition of a given tax on a product.
• B)​the greater the burden is of the tax borne by consumers.
• C)​the greater the tax revenue collected by the government is.
• D)​all of the above

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Definitions:

Margin of Safety

The difference between actual or expected sales and sales at the break-even point.

Units

Units are individual portions or segments of a whole, such as items produced, sold, or analyzed in a specific context, serving as a basic measure of quantity.

Advertising Budget

The sum of funds designated for the promotion of a brand, product, or service within a certain time frame.

Net Operating Income

A company's profit after subtracting operating expenses, excluding interest and taxes.