Consumers Will Lose No Consumer Surplus Due to a Tax

question 75

Multiple Choice

Consumers will lose no consumer surplus due to a tax if

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

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Definitions:

Brand Equity

The value and strength of a brand, measured by recognition, loyalty, and positive perceptions among consumers.

Parent Brand

The main or overarching brand under which individual products, services, or subsidiary brands are marketed.

Cannibalise Sales

A situation where a new product eats into the sales of other products within the same brand or company.

Category Extensions

A strategy where a brand uses its established name to launch a new product in a different product category.