If the Demand for a Good Is Very Price Elastic

question 204

Multiple Choice

If the demand for a good is very price elastic, the imposition of a tax on that good

• A) places the largest portion of the burden on the sellers of that product
• B) places the burden of the tax equally on buyers and sellers
• C) places the largest portion of the tax on consumers
• D) will make demand more elastic than it was before the tax
• E) will make demand more inelastic than it was before the tax

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Definitions:

Pathology

The study of diseases and the changes they cause in the structure and functions of the body.

Resilience

The ability to quickly recover from difficulties or adapt effectively to adversity or stress.

Health

The state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity.

Financial Pressure

Stress and anxiety caused by inadequate financial resources or burdensome financial obligations.