If the Demand for Bread Is More Elastic Than the Supply

question 158

Multiple Choice

If the demand for bread is more elastic than the supply of bread,which group will bear more of the incidence of a tax on bread?

• A) consumers
• B) the government
• C) neither consumers nor producers
• D) producers
• E) both consumers and producers equally

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Definitions:

Satisfaction

The level of contentment or fulfillment received from consuming a product or service.

Usefulness

The ability or quality of being able to serve a purpose effectively or efficiently.

Utility

A term in economics that refers to the total satisfaction received from consuming a good or service.

Satisfaction

The fulfillment of one's wishes, expectations, or needs, or the pleasure derived from this fulfillment.