When a Good Is Perfectly Inelastic in Demand, or Perfectly

question 179

True/False

When a good is perfectly inelastic in demand, or perfectly elastic in supply, the buyers will pay the full tax that is placed on the sellers.

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Definitions:

Opportunity Cost

The expense incurred from not choosing the next most favorable alternative during decision-making.

Production Possibilities Curves

A graphical representation that shows the maximum attainable combinations of two goods that can be produced with available resources.

Labor Forces

The total number of people aged 16 and over who are either working or actively looking for work.

Wages

Payments made to workers for their labor, typically calculated on an hourly, daily, or piecework basis.