If a Tax Is Imposed on a Good with Equally

question 54

Multiple Choice

If a tax is imposed on a good with equally elastic supply and demand,the burden of the tax will be borne

• A) by consumers and producers equally.
• B) by consumers alone.
• C) by producers alone.
• D) mostly by consumers but partially by producers.
• E) mostly by producers but partially by consumers.

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Definitions:

Medical Necessity

A judgment by a healthcare provider that a specific treatment, test, or procedure is essential for diagnosing or treating a patient's condition in accordance with accepted standards of medical practice.

Deductible

The amount paid out of pocket by the policyholder before an insurance company pays a claim.

Predetermined Amount

A specific quantity or sum set in advance.

Group Insurance

An insurance policy that covers multiple people under one contract, typically offered by employers, associations, or organizations.