If Demand for Good Is Very Inelastic and Supply for the Good

question 70

Multiple Choice

If demand for good is very inelastic and supply for the good is very elastic a sales tax imposed on sellers will cause the price received by sellers

• A) would not change very much.
• B) would rise by more than the amount of the tax.
• C) would fall by an amount of the tax.
• D) would fall by more than the amount of the tax.

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Definitions:

Demassification

A process by which the mass audience is fragmented into small groups or niches to appeal to unique interests.

Mass Media

Forms of communication designed to reach large audiences through mediums like television, newspapers, radio, and the internet.

Audience Segment

A subgroup of a larger audience distinguished by specific characteristics, such as demographics or behavioral patterns, allowing for targeted content or advertising.

Newspapers

Printed publications consisting of sheets of paper that contain news, articles, advertisements, and other information.