A Tax That Is Assessed on Producers Has No Effect

question 19

Multiple Choice

A tax that is assessed on producers has no effect on a product's price if

• A)demand is perfectly inelastic.
• B)demand is perfectly elastic.
• C)demand is unit elastic.
• D)supply is unit elastic.
• E)supply is perfectly elastic.

---

Definitions:

Managerial Responsibility

The obligation of managers to make decisions and take actions that maximize the value and effectiveness of an organization.

Top Management

The highest level of managers within an organization, responsible for setting policies, strategic planning, and making significant corporate decisions.

Return on Investment (ROI)

A measure used to evaluate the efficiency of an investment or to compare the efficiency of several different investments, calculated as net profit divided by the cost of the investment.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.