If Elasticity of Demand Is 0

question 169

Multiple Choice

If elasticity of demand is 0.7, elasticity of supply is 0.7, and a 5 percent excise tax is levied on the good:

• A) the tax burden on suppliers will be greater.
• B) the tax burden on consumers will be greater.
• C) the tax burden will be the same for both.
• D) one cannot say who will bear the greater burden without knowing the tax.

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Definitions:

Personal Recognition

The acknowledgement or appreciation of an individual's contributions or achievements, often used as a motivational tool in various settings.

Selling Activities

The range of actions involved in promoting and selling goods or services, including prospecting, presentations, and closing sales.

Potential Employer

A company or individual who might consider hiring a job applicant.

Journalists

Journalists are individuals who collect, write, or distribute news or other current information to the public through various media.