If an Excise Tax Is Placed on a Product That

question 47

Multiple Choice

If an excise tax is placed on a product that has a perfectly inelastic demand, then:​

• A) ​the entire tax will be paid by the consumer.
• B) ​the entire tax will be paid by the producer.
• C) ​the consumer and producer will each pay a share of the tax.
• D) ​the incidence of the tax cannot be determined unless we know the coefficient of price elasticity of supply.
• E) ​the tax is progressive.

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Definitions:

Spores

Spores are reproductive cells that are capable of developing into a new individual without sexual fusion, characteristic of various plants, algae, fungi, and some bacteria.

Budding

A form of asexual reproduction where a new individual grows from a certain point of the parent organism and eventually detaches itself to become independent.

Candida

A genus of yeasts, some species of which can cause infections in humans, especially in immunocompromised individuals.

Human Fungal Vaginitis

A condition caused by the overgrowth of fungi in the vagina, leading to inflammation, itching, and discharge.