Principles of Economics, 7th Edition

Published by South-Western College
ISBN 10: 128516587X
ISBN 13: 978-1-28516-587-5

Chapter 8 - Part III - Application: The Costs of Taxation - Quick Check Multiple Choice - Page 169: 6

Answer

a. small elasticities of demand and small elasticities of supply

Work Step by Step

If the elasticities are small, the increased prices and costs will not shrink the market as much.
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