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coolcat coolcat
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A week ago

"For a given supply curve, the excess burden of a tax will be greater when the demand for a product is less elastic than when the demand is more elastic." This statement is



incorrect. When demand is less elastic, the burden of the tax is smaller than when the demand is more elastic.



incorrect because the incidence of the tax, not the burden of the tax, is affected by the elasticity of demand.



correct.



incorrect. The statement confuses demand with quantity demanded.

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brigettelearnbrigettelearn
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A week ago
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incorrect. When demand is less elastic, the burden of the tax is smaller than when the demand is more elastic.

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