Given the Same Supply Elasticity, the Burden of a 10

question 170

Multiple Choice

Given the same supply elasticity, the burden of a 10 percent tax on suppliers would be greatest on consumers within what price range? $$\begin{array} { | c | c | } \hline \text { Price } & \text { Quantity } \\\hline \$ 2.00 & 26 \\\hline 4.00 & 22 \\\hline 6.00 & 18 \\\hline \mathbf { 8 . 0 0 } & 14 \\\hline 10.00 & 10 \\\hline\end{array}$$

• A)$2 and $4.
• B)$4 and $6
• C)$6 and $8
• D)$8 and $10

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Definitions:

Starting Salaries

The initial amount of money that an employee earns annually when beginning a new job.

Standard Deviation

A system for evaluating the degree of dispersion or deviation among a collection of statistics.

Normally Distributed

A type of distribution in which data is symmetrically distributed with most of the observations clustering around the central peak and the probabilities for values further away from the mean tapering off equally on both sides.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values; a low standard deviation indicates that the values are close to the mean of the set.