If the demand for a product is elastic, then:
A. A higher tax on the product will generate more tax revenue
B. A higher tax on the product will generate less tax revenue
C. Total revenue will decrease as price decreases
D. Total revenue will remain constant as price increases
B. A higher tax on the product will generate less tax revenue
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________ are the time and resources spent trying to exchange goods and services
A) Bargaining costs B) Transaction costs C) Contracting costs D) Barter costs
Which of the following would be most likely to improve the standard of living of a less-developed country?
a. Development of strong labor unions. b. More foreign investment, attracted by the expectation of economic and political stability. c. Adoption of trade barriers (higher tariffs and quotas). d. Widespread use of price controls to allocate goods and resources.