Suppose a Tax of $1 Per Unit Is Imposed on a Good.The

question 9

Multiple Choice

Suppose a tax of $1 per unit is imposed on a good.The more elastic the supply of the good,other things equal,the

• A)smaller is the response of quantity supplied to the tax.
• B)larger is the tax burden on sellers relative to the tax burden on buyers.
• C)larger is the deadweight loss of the tax.
• D)All of the above are correct.

---

Definitions:

Sociable

Disposed to or conducive to companionship with others.

Laissez-faire

An economic doctrine that opposes governmental intervention in market exchanges, advocating for a free market system.

Democratic

Pertaining to a system of government by the whole population or all the eligible members of a state, typically through elected representatives.

'Least-preferred co-worker'

A concept used in Fiedler's contingency theory to gauge a leader's task or relationship orientation based on their description of a difficult co-worker.