The More Elastic the Demand Curve, the ____ Will Be

question 112

Multiple Choice

The more elastic the demand curve, the ____ will be the effect of a tax on the quantity exchanged and the ____ will be the welfare cost.​

• A)​greater; greater.
• B)​greater; smaller.
• C)​smaller; greater.
• D)​smaller; smaller.

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Definitions:

Combined Margin

A financial metric that calculates the total profitability of a product by combining different types of margins, such as gross and net margins.

Investment Opportunity

A financial investment or venture that has the potential to yield returns or profits to the investor.

Company

A business or association of persons engaged in commercial, industrial, or professional activities, either incorporated or unincorporated.

Return on Investment (ROI)

A measure of the profitability of an investment, expressed as a percentage of the initial amount invested.