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How Does Elasticity Affect the Burden of a Tax? Justify

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Essay

How does elasticity affect the burden of a tax? Justify your answer using supply and demand diagrams.


Definitions:

Stimulus

Any object or event that elicits a sensory or behavioral response in an organism.

Response

A reaction to a specific stimulus or situation, which can be physiological, emotional, or behavioral.

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without previous conditioning.

Unlearned Reaction

An instinctual or reflexive response that occurs without prior learning or experience, typically innate and common in human and animal behavior.

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