Which of the Following Is True If a $2 Per

question 84

Multiple Choice

Which of the following is true if a $2 per unit tax is levied on sellers of a good?

• A)Buyers bear the brunt of the tax if the elasticity of demand is - 1.3 and the elasticity of supply is .6.
• B)The price consumers pay will increase by $2 if the elasticity of demand is 0.
• C)Buyers bear the brunt of the tax if the elasticity of demand is - .3 and the elasticity of supply is 1.6.
• D)Dead weight loss will be smaller the more elastic demand.

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Definitions:

Retinaculum

Dense regular connective tissue sheath holding down the tendons at the wrist, ankle, or other sites.

Dorsal Interossei

Muscles located between the bones of the hand that act to abduct (spread apart) the fingers.

Abductor Pollicis Brevis

A muscle in the hand that abducts the thumb, helping in movements like gripping or holding objects.

Lumbricals

Muscles in the hand and foot that flex the metacarpophalangeal joints and extend the interphalangeal joints.