A Decrease in the Size of a Tax Is Most

question 23

Multiple Choice

A decrease in the size of a tax is most likely to increase tax revenue in a market with

• A)elastic demand and elastic supply.
• B)elastic demand and inelastic supply.
• C)inelastic demand and elastic supply.
• D)inelastic demand and inelastic supply.

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Definitions:

Education Status

A classification representing the highest level of education an individual has completed.

Stepwise Regression

A statistical method of building a regression model by successively adding or removing variables based solely on the t-statistics of their estimated coefficients.

Curvilinear Relationships

Relationships between two variables in which the change in one variable is associated with a non-linear change in another variable.

Dependent Variable

The variable in an experiment or study that is expected to change in response to manipulations of the independent variable.