When a Good Is Taxed,the Burden of the Tax

question 31

Multiple Choice

When a good is taxed,the burden of the tax

• A)falls more heavily on the side of the market that is more elastic.
• B)falls more heavily on the side of the market that is more inelastic.
• C)falls more heavily on the side of the market that is closer to unit elastic.
• D)is distributed independently of relative elasticities of supply and demand.

Evaluate the effects of price discrimination on social welfare, including changes in consumer surplus, producer surplus, and deadweight loss.

Distinguish between different types of price discrimination and their effects on different consumer groups.

Grasp how elasticity of demand influences price discrimination strategies and outcomes.

Recognize the role of government interventions in correcting market failures associated with monopolies and discriminatory pricing.

---

Definitions:

Cognitive Theorists

Scholars and psychologists who study the mental processes involved in knowing, including aspects such as awareness, perception, reasoning, and judgment.

Depressed People

Individuals experiencing a mood disorder characterized by persistent feelings of sadness, hopelessness, and a lack of interest or pleasure in activities.

Hopeless

A state of despair, characterized by a lack of hope, optimism, and a feeling that there is no possibility of improvement.

Mania

A mental state characterized by extremely elevated mood, energy, and unusual thought patterns, often associated with bipolar disorder.