Suppose That There Is a Tax of $5 Per Unit

question 166

Multiple Choice

Suppose that there is a tax of $5 per unit, and the demand curve is more elastic than the supply curve. Which of the following statements could be TRUE?

• A) Buyers pay $3 of the tax.
• B) Buyers pay $1 of the tax.
• C) Sellers pay $1 of the tax.
• D) Sellers pay all of the tax.

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Definitions:

Secondary Alcohol

An alcohol in which the hydroxyl (-OH) group is attached to a carbon atom that is connected to exactly two other carbon atoms.

Tertiary Alcohol

An alcohol in which the hydroxyl group (-OH) is attached to a carbon atom that is connected to three other carbon atoms.

Common Name

A non-systematic name for a chemical substance, typically based on its historical use or properties, rather than a standardized nomenclature.

IUPAC Name

The methodology for naming chemical substances systematically as suggested by the International Union of Pure and Applied Chemistry.