The Elasticities of Supply and Demand Are Important in Determining

question 93

Multiple Choice

The elasticities of supply and demand are important in determining the distribution of tax burden because they

• A) measure how much consumers are willing to pay or how much firms must receive in order to produce.
• B) reflect who actually pays the tax out of pocket.
• C) measure how responsive producers and consumers are to a change in price.
• D) reflect how much tax revenue is collected from the tax.
• E) determine who is legally responsible for remitting funds to the government.

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Definitions:

Probability Histogram

A graphical representation showing the distribution of probabilities rather than frequencies for a set of intervals or categories of a continuous variable.

Discrete Random Variables

Variables that can take on a countable number of distinct and separate values.

Event A

A specific outcome or type of outcome within a probability experiment.

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