If the absolute value of the tax elasticity of supply is 8,a tax cut of 0.5 percent should cause the output supplied to
A)Increase by 16 percent.
B)Decrease by 16 percent.
C)Increase by 4 percent.

Question

Quizplus · Accepted Answer

The Answer of If the absolute value of the tax elasticity of supply is 8,a tax cut of 0.5 percent should cause the output supplied to
A)Increase by 16 percent.
B)Decrease by 16 percent.
C)Increase by 4 percent.

If the Absolute Value of the Tax Elasticity of Supply