The More Price-Elastic the Demand, the Larger the Increase in Tax

question 94

True/False

The more price-elastic the demand, the larger the increase in tax revenues resulting from a per-unit tax on a good.

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Definitions:

Syllogism Valid

A form of reasoning in which a conclusion is drawn from two given or assumed propositions (premises); valid if the conclusion logically follows from the premises.

Conclusion

The final part of something, such as an argument or a piece of writing, summarizing the main points or deducing a final decision.

Disjunctive Propositions

Statements that offer a choice between two or more mutually exclusive options or propositions.

Asserted

Claimed or declared positively, often without proof or support.