For a Given Elasticity of Demand,the Less Elastic the Supply,the

question 108

Multiple Choice

For a given elasticity of demand,the less elastic the supply,the

• A) larger the deadweight loss from a tax.
• B) larger the share of a tax paid by the sellers.
• C) greater the burden on the government from a tax.
• D) greater is the excess burden from a tax.
• E) larger the share of a tax paid by the buyers.

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Definitions:

Devaluation

The reduction of the value of a country's currency relative to other currencies, often by the government's decision, affecting international trade and economic balance.

Currency's Value

The worth of a country's currency in terms of the amount of goods or services that one unit of the currency can buy.

Fixed Standard

Refers to a set benchmark or criterion that remains constant over time and is used for comparison or evaluation purposes.

Devalues Its Currency

A deliberate reduction in the value of a country's currency relative to other currencies, typically by its central bank.