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Unformatted text preview: refore, revenue will
fall by approximately $30. The correct answer is (J).
Excess burden is a measure of the economic loss to society due to taxation. The correct answer is
The more elastic the demand for a commodity, the less the revenue raised through taxation, the
smaller is the buyers share of the tax, and the larger is the excess burden of the tax. Both statements
II and III are correct. The correct answer is (F).
Since, at the current output, AC>AVC>MC, it must be true that AC and AVC are both falling (being
pulled down by MC...
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- Fall '09