Therefore revenue will fall by approximately 30 the

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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 (C). 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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