Given the Same Price Elasticity of Supply, Sellers Would Be

question 55

Multiple Choice

Given the same price elasticity of supply, sellers would be able to pass along the smallest portion of a 10 percent tax on which item?

• A) Beef with a price elasticity of demand of 0.62
• B) Pork with a price elasticity of demand of 0.73
• C) Chicken with a price elasticity of demand of 0.32
• D) Fish with a price elasticity of demand of 0.12

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Definitions:

Marginal Costs

The change in total cost that comes from making or producing one additional item.

MC Curve

A graph representing the marginal cost of producing each additional unit of output in a firm or economy.

Monopolist

A monopolist is a sole provider of a good or service in a market, possessing significant control over prices and market conditions due to lack of competition.

Total Costs

The complete sum of expenses for the creation of goods or the delivering of services, including both unchanging and variable costs.