An Excise Tax Is Imposed on Smartphones

question 68

Multiple Choice

An excise tax is imposed on smartphones. If the elasticity of demand is 2 and the elasticity of supply is 1, we can predict that:

• A) consumers will bear the full tax burden.
• B) sellers will bear the full tax burden.
• C) consumers will bear 2/3 of the tax burden.
• D) sellers will bear 2/3 of the tax burden.

---

Definitions:

Mating Strategy

An approach or techniques used by individuals to find and attract a partner for reproduction and long-term bonding.

Evolutionary Psychology

A theoretical approach in psychology that examines psychological structure from a modern evolutionary perspective.

Multiple Sexual Partners

The practice or behavior of having sexual interactions with more than one individual, distinct from monogamous relationships.

Parental Investment

The time and energy parents expend for their offspring's benefit, including aspects of care, protection, and teaching.