The More Elastic the Supply of a Product, the More

question 126

Multiple Choice

The more elastic the supply of a product, the more the actual burden of a tax on the product will:

• A) fall on sellers.
• B) fall on buyers.
• C) fall equally on both buyers and sellers.
• D) create a smaller deadweight loss (or excess burden).

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Definitions:

ADH

Antidiuretic Hormone, a hormone that helps to control the balance of water in the body by affecting the kidneys.

Water Reabsorption

The process by which water is taken back into the body from the filtrate produced by the kidneys during urine formation, thus maintaining fluid balance.

Collecting Ducts

The structures in the kidneys that receive urine from the nephrons and transport it into the renal pelvis, playing a key role in water and ion balance.

Filtrate Osmolality

Filtrate osmolality refers to the concentration of solutes in the fluid that is filtered through the body's cells or organs, important in the regulation of water and solute balance.