Recall the application about the response to lower taxes in French restaurants.If the demand for restaurant meals is elastic,we could predict the tax cut will:

Question

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If the demand for restaurant meals is elastic, that means that consumers are sensitive to changes in price, and a decrease in taxes would result in a decrease in the price of restaurant meals. This in turn would lead to an increase in the quantity demanded of restaurant meals as consumers are now more willing and able to buy at a lower price. Therefore, the tax cut would increase the sales of restaurant meals.

Recall the Application About the Response to Lower Taxes in French