When a Tax Is Imposed on a Good for Which

question 14

Multiple Choice

When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic,

• A)buyers of the good will bear most of the burden of the tax.
• B)sellers of the good will bear most of the burden of the tax.
• C)buyers and sellers will each bear 50 percent of the burden of the tax.
• D)both equilibrium price and quantity will increase.

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Definitions:

Stereotype Threat

The risk of confirming negative stereotypes about an individual's racial, ethnic, gender, or cultural group, which can adversely affect performance and behavior.

Black Students

Students of African descent who are part of an educational system.

Test Performance

Refers to how well an individual does on an assessment of their knowledge, skills, abilities, or physical fitness.

Stereotype Threat

The risk of conforming to stereotypes about one's social group, which can negatively affect performance and self-perception.