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The Price Elasticity of Demand Is Always Positive, as Is

question 145

Essay

The price elasticity of demand is always positive, as is the price elasticity of supply. Is the cross elasticity of demand always positive? Explain your answer.


Definitions:

Tax

Mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Buyers

Individuals or organizations that purchase goods or services for personal use, resale, or as input for the production of other goods and services.

Price

The fiscal amount foreseen, obligatory, or rendered in settlement for something.

Tax Burden

The total amount of taxes that individuals or businesses must pay to the government, expressed as a percentage of income or revenue.

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