If Demand Is More Inelastic Than Supply Is, the

question 18

Multiple Choice

If demand is more inelastic than supply is, the

• A)larger the portion of the tax that will be paid by producers
• B)larger the portion of the tax that will be paid by consumers
• C)more likely it is that the tax will be spread equally between producers and consumers
• D)smaller the portion of the tax that will be paid by consumers
• E)smaller the impact that an income tax will have on consumer preferences

Recognize and correct errors related to word choice, particularly homophones and common look-alike/sound-alike mistakes.

Understand and apply organizational patterns in paragraph development, including spatial and logical order.

Distinguish between relevant and irrelevant details in writing.

Assess and describe physical appearances and personalities in descriptive writing.

---

Definitions:

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in the context of evaluating investments or projects.

Net Cash Inflows

The amount of cash received from operations, investments, and financing activities, minus the cash outflows for the same activities.

Salvage Value

The predicted value at which an asset can be sold after its useful life concludes.

Working Capital

The difference between a company's current assets and current liabilities, reflecting its short-term financial health and operational efficiency.