If Neither the Demand nor Supply of a Good Is

question 52

Multiple Choice

If neither the demand nor supply of a good is perfectly elastic or inelastic, a tax on the good ________ consumer surplus and ________ producer surplus.

• A) decreases; increases
• B) decreases; decreases
• C) increases; increases
• D) decreases; does not change
• E) increases; decreases

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Definitions:

Significant Influence

Refers to the power to participate in the financial and operating policy decisions of an investee but is not control over those policies.

Investee's Board

The group of individuals elected by shareholders to oversee the management and make strategic decisions for a company in which investment has been made.

Computing Services

The provision of computational resources, such as servers, storage, databases, networking, software, analytics, and intelligence, over the Internet.

FVTOCI

Fair Value Through Other Comprehensive Income (FVTOCI) is an accounting classification for financial assets, indicating changes in fair value are reported in other comprehensive income rather than profit or loss.