Multiple Choice
Historically salt has been one of the most commonly taxed items.Which of the following do you think best explains this fact?
A) Since salt is a necessity, levying a tax on it imposed a hardship on no one
B) The burden of the tax will be shared by everyone since everyone uses salt
C) Because salt is used more by those with higher incomes, a tax will decrease their consumption
D) The demand for salt is inelastic
E) The demand for salt is elastic
Correct Answer:
Verified
Correct Answer:
Verified
Q12: Exhibit 5-31 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 5-31
Q13: If demand is more elastic than supply
Q14: Levying a tax on a good when
Q15: If demand is elastic, a tax increase
Q16: If supply is more inelastic than demand
Q18: If demand is more inelastic than supply
Q19: On which of the following goods would
Q20: Exhibit 5-32 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6784/.jpg" alt="Exhibit 5-32
Q21: If there is a $1 per box
Q22: The more elastic is the supply, the