If There Is a $1 Per Box Tax Imposed on the Sale

question 21

Multiple Choice

If there is a $1 per box tax imposed on the sale of tea and the price paid by consumers increases by $0.50, what may we conclude about the price elasticities of demand and supply?

• A)The elasticity of supply must be less than the price elasticity of demand
• B)The amount exchanged in the market will remain the same
• C)The elasticity of supply must be greater than the price elasticity of demand
• D)The elasticity of supply must be equal to the elasticity of demand
• E)We need more information to answer the question

---

Definitions:

Completion

The act of finishing a task or bringing it to an end.

Helplessness

A state of feeling unable to control events or conditions, often leading to a lack of motivation or action.

Emotional Standstill

A state where an individual feels emotionally stuck or unable to progress beyond certain feelings.

Economic Success

The achievement of financial prosperity, growth, or stability in an individual or organizational context.