The excess burden of taxation will _____ when the demand curve is more elastic.
A)not change
B)be higher
C)be lower
D)be zero

Name: The excess burden of taxation will _____ when the demand curve is more elastic. A)not change B)be higher C)be lower D)be zero
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Question

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The excess burden of taxation will be higher when the demand curve is more elastic because consumers are more sensitive to price changes, leading to larger distortions in the market and a greater loss of economic efficiency.

The Excess Burden of Taxation Will _____ When the Demand