For a Given Supply Curve, How Does the Elasticity of Demand

question 168

Multiple Choice

For a given supply curve, how does the elasticity of demand affect the burden of a tax imposed on a product?

• A)The excess burden of the tax will be minimized when the demand is unit elastic.
• B)The excess burden of the tax will be greater when the elasticity of supply is greater than the elasticity of demand.
• C)The excess burden of the tax will be greater when the demand is less elastic than when it is more elastic.
• D)The excess burden of the tax will be greater when the demand is more elastic than when it is less elastic.

---

Definitions:

Relational Dimension

The dimension of communication that offers cues about the emotions, attitudes, and amount of power and control a speaker feels in relation to listeners.

Communication Message

The information or key point that is being conveyed from the sender to the receiver through various means.

Enthusiasm

A feeling of energetic interest in a particular subject or activity and an eagerness to be involved in it.

Interpreting

The process of translating spoken or signed language into another language.