If the Government Levies an Excise Tax in a Market

question 225

Multiple Choice

If the government levies an excise tax in a market whose demand curve is perfectly inelastic,the burden of the tax will fall completely on the _____,and the deadweight loss will equal _____.

• A)consumers;zero
• B)producers;zero
• C)consumers;the tax revenue
• D)producers;the tax revenue

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Definitions:

Alzheimer's Disease

A progressive neurodegenerative disorder characterized by cognitive decline, memory loss, and changes in behavior and personality.

Disorientation

A state of confusion or loss of sense of direction, often experienced in unfamiliar situations or as a result of cognitive impairment.

Mood Changes

Variations in a person's emotional state, ranging from happiness to sadness, which can occur due to various factors including stress, hormonal changes, or health conditions.

Elderly

Individuals who are of an advanced age, typically considered to be those who are beyond the middle age of life, often associated with retirement and increased health concerns.