If the Demand for a Good Is Perfectly Elastic,then a Tax

question 41

Multiple Choice

If the demand for a good is perfectly elastic,then a tax on the good will be paid

• A)completely by the buyers.
• B)completely by the sellers.
• C)equally by the buyers and sellers.
• D)mostly but not completely by the buyers.
• E)mostly but not completely by the sellers.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with shareholders entitled to vote on corporate matters and receive dividends.

Acquisition

The process by which a company purchases most or all of another company's shares in order to take control of it.

Fair Value

The financial gain from selling an asset or the financial outlay for relocating a liability in an orderly market activity on the designated measurement day.

Consolidated Revenues

Total revenues generated by a parent company and its subsidiaries, presented in a combined form on the financial statements.