The more price elastic the demand curve, the less quantity demanded will fall when a per-unit tax is imposed.

Name: The more price elastic the demand curve, the less quantity demanded will fall when a per-unit tax is imposed.
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Question

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The more price elastic the demand curve, the more quantity demanded will fall when a per-unit tax is imposed, as consumers are more sensitive to price changes and will reduce their consumption more significantly.

The More Price Elastic the Demand Curve, the Less Quantity