If Demand for a Product Is Perfectly Inelastic, a Tax

question 120

Multiple Choice

If demand for a product is perfectly inelastic, a tax of $1 per unit imposed on sellers will

• A)not affect the market price of the product.
• B)cause the market price to rise by $1 per unit.
• C)cause the market price to decline by $1 per unit.
• D)cause the market price to rise by less than $1 per unit.
• E)none of the above

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Definitions:

Uracil

A nitrogen-containing base found in RNA, where it pairs with adenine and replaces thymine during DNA transcription.

RNA

Ribonucleic acid is a type of nucleic acid found in every living cell, serving as a messenger that transports directions from DNA for the production of proteins.

Nitrogen Bases

Organic molecules that make up the building blocks of DNA and RNA, including adenine, thymine, cytosine, guanine, and uracil.

Enzymes

Natural substances that markedly enhance the rate at which virtually all intra-cellular chemical reactions occur.