Asked by
Buttered Toast
on Dec 19, 2024
Verified
The greater the elasticity of demand and supply, the greater is the efficiency loss of a tax.
Elasticity
A general concept measuring the responsiveness of one variable to changes in another variable.
Efficiency Loss
The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.
- Learn about the effect of elasticity in demand and supply on the allocation of tax responsibilities.
Verified Answer
JR
Learning Objectives
- Learn about the effect of elasticity in demand and supply on the allocation of tax responsibilities.