If the Supply Curve Is Perfectly Price Elastic, a Per-Unit

question 21

Multiple Choice

If the supply curve is perfectly price elastic, a per-unit tax

• A) does not create a deadweight loss.
• B) does not reduce consumer surplus.
• C) does not reduce producer surplus.
• D) reduces consumer surplus but increases producer surplus.

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Definitions:

Misstatement

A discrepancy in financial documentation that occurs when a financial statement contains deviations from the truth, errors, or omissions.

Balance Sheet

A financial statement that provides a snapshot of a company's financial condition at a specific point in time, showing assets, liabilities, and shareholders' equity.

Income Statement

A financial document that reports a company's financial performance over a specific accounting period, outlining revenues, expenses, and net profit or loss.

Perpetual Inventory System

A system for managing inventory that instantly logs transactions of buying or selling inventory via computerized point-of-sale systems and software for enterprise asset management.