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.

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Definitions:

Memory Consolidation

The process by which short-term memories are transformed into long-term memories, making them more stable and durable over time.

Activation-Synthesis

A theory of dreaming that suggests dreams are interpretations by our cortex of random neural activity originating in the lower brain areas during REM sleep.

Cognitive Development

The development and transformation of cognitive skills including thought processes, logical reasoning, and comprehension.

Selective Attention

The process of focusing on a specific aspect of information while ignoring other perceivable information.