The Price Elasticity of Demand Is -1

question 5

Multiple Choice

The price elasticity of demand is -1.5. The price elasticity of supply is 1.5. The fraction of a specific tax that is borne by producers is:

• A) 0
• B) 0.25
• C) 0.5
• D) 0.75
• E) 1

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Definitions:

Neuron

A specialized cell transmitting nerve impulses; the basic building block of the nervous system.

Dendrites

These are branched extensions of a neuron that receive signals from other neurons.

Axons

Long fibers extending from neurons that transmit electrical impulses away from the neuron's cell body towards other neurons, muscles, or glands.

Dendrites

Tree-like extensions at the neuron's body that receive signals from other neural cells for processing.