When Elasticities of Supply and Demand Are Both Equal to 1

question 113

Multiple Choice

When elasticities of supply and demand are both equal to 1, the burden of a tax will be:

• A) entirely on buyers.
• B) entirely on sellers.
• C) half on buyers and half on sellers.
• D) mostly on buyers.

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Definitions:

Mechanistic Organization

A form of organization characterized by rigid hierarchies, high levels of formalization, and centralized decision-making, often seen in traditional, large-scale businesses.

Organic Design

A design philosophy that promotes harmony between the natural environment and human habitation, often emphasizing sustainability and fluidity.

Status Quo

The existing state or condition of affairs, often used in the context of resisting change.

Force Field Analysis

A method used to identify and evaluate the forces that support or resist a particular change or decision.