If the Demand for a Good Is Very Price Elastic

question 204

Multiple Choice

If the demand for a good is very price elastic, the imposition of a tax on that good

• A) places the largest portion of the burden on the sellers of that product
• B) places the burden of the tax equally on buyers and sellers
• C) places the largest portion of the tax on consumers
• D) will make demand more elastic than it was before the tax
• E) will make demand more inelastic than it was before the tax

---

Definitions:

Act of God

An event outside of human control, such as a natural disaster, for which no one can be held responsible.

Defence to Negligence

Legal reasons presented to demonstrate a defendant did not breach a duty of care or their actions did not cause the plaintiff's damages.

Release

A legal document or agreement that relinquishes rights, claims, or interests from one party to another, often used to resolve disputes or acknowledge payment.

Waiver

A waiver is the voluntary relinquishment or surrender of some known right or privilege.