Consider a Good Whose Own Price Elasticity of Demand Is

question 82

Multiple Choice

Consider a good whose own price elasticity of demand is 0 and price elasticity of supply is 1. The fraction of a specific tax that will be passed through to consumers is:

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

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Definitions:

Histogram

Graphic representation of a frequency distribution using bars to represent each score or group of scores.

Interval Scale

A scale of measurement that shows the order of values and the exact differences between them, but without a true zero point.

Ordinal Scale

A scale of measurement where data is ordered, but the differences between data points cannot be assumed to be equal.

Statistical Treatments

Methods applied to data for the purpose of drawing conclusions or making inferences, including statistical tests and computations.