Your local government needs to increase tax revenue. To increase tax revenue it can either increase the property tax on commercial property or increase the property tax on all property. The government wants to impose the smallest excess burden possible. Because the demand for commercial property is ________ elastic than the demand for all property, you recommend that local government increase the property tax on ________ property.
A. more; all
B. more; commercial
C. less; all
D. less; commercial
Answer: A
You might also like to view...
In the Classical system, the interest rate is determined by all of the following except
A) the thriftiness of the public. B) the money supply. C) the productivity of capital. D) investment.
U.S. exports of services were equal to about ____________ of U.S. exports of goods in 2014, compared to ________ in 1980.
a. one-half; one-fourth B. one-half; one-third c. one-half; one-fifth d. one-half; one-eighth
If education produces positive externalities and the government does not intervene in the market, we would expect
a. the equilibrium price to be higher than the optimal price. b. the equilibrium quantity to be lower than the optimal level. c. the equilibrium quantity to be higher than the optimal level. d. both a and b are correct
Price discrimination requires that different customers have different levels of price sensitivity and that
A. marginal costs are falling. B. demand is homogeneous amongst customers. C. customers cannot resell the product amongst themselves. D. the cost of production is different for every customer.