Assume the Demand for Cigarettes Is Relatively Inelastic,and the Supply

question 159

Multiple Choice

Assume the demand for cigarettes is relatively inelastic,and the supply of cigarettes is relatively elastic.When cigarettes are taxed,we would expect

• A)most of the burden of the tax to fall on sellers of cigarettes,regardless of whether buyers or sellers of cigarettes are required to pay the tax to the government.
• B)most of the burden of the tax to fall on buyers of cigarettes,regardless of whether buyers or sellers of cigarettes are required to pay the tax to the government.
• C)the distribution of the tax burden between buyers and sellers of cigarettes to depend on whether buyers or sellers of cigarettes are required to pay the tax to the government.
• D)a large percentage of smokers to quit smoking in response to the tax.

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Definitions:

Surgical Procedure

A medical operation involving an incision with instruments performed to repair damage or arrest disease in a living body.

Tissue Transfer

The surgical relocation of skin, bone, or other tissues from one part of the body to another to repair areas damaged by trauma or disease.

Cryonics

Cryonics is the practice of preserving human bodies at extremely low temperatures with the hope that future technology can revive them and cure any diseases.

Decomposition

The process of breaking down organic matter into simpler forms of matter, often involving bacterial or fungal activity.