A $200 Increase in the Size of a Tax on a a Good

question 59

Multiple Choice

A $2.00 increase in the size of a tax on a good will only cause the price for buyers to increase by $2.00 if

• A) demand is perfectly inelastic.
• B) demand is perfectly elastic.
• C) demand is elastic, but not perfectly elastic.
• D) demand is inelastic, but not perfectly inelastic.
• E) demand is unit elastic.

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Definitions:

Similarity

The state of being alike or having attributes in common, often used to describe the degree of resemblance between objects, ideas, or individuals.

Romantic Relationships

Bonds characterized by emotional and physical intimacy, often involving love, commitment, and support between partners.

Friendships

Relationships built on mutual trust, affection, and support between people.

Ovulation

The release of an egg from the ovary, a part of the female reproductive cycle which allows for fertilization.