The Only Way Price and Quantity Will Not Change When

question 90

Multiple Choice

The only way price and quantity will not change when a tax is assessed on producers is for

• A)demand to be perfectly inelastic.
• B)supply to be perfectly elastic and demand to be perfectly inelastic.
• C)supply to be perfectly elastic.
• D)supply to be perfectly inelastic.
• E)demand to be perfectly elastic.

---

Definitions:

Cash Collection

The process of receiving and processing payments from customers.

Revenue Recognition

The accounting principle that determines the specific conditions under which income becomes realized as revenue, often at the time of sale or service delivery.

Gross Profit

The difference between revenue from sales and the cost of goods sold, indicating the amount before deducting operating expenses, taxes, and other charges.

Merchandiser

A business entity that purchases goods for resale at a profit, engaging in activities that include buying, storing, and selling merchandise.