Consumers Will Lose No Consumer Surplus Due to a Tax

question 75

Multiple Choice

Consumers will lose no consumer surplus due to a tax if

• A) demand is somewhat elastic.
• B) supply is perfectly elastic.
• C) supply is somewhat elastic.
• D) demand is perfectly elastic.
• E) demand is perfectly inelastic.

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Definitions:

Annual Salary

The total amount of money that an individual earns in one year from their job before taxes and other deductions.

Sampling Distribution

The distribution of a statistic (such as the mean or variance) derived from a large number of samples of a specific size from a particular population.

Sample Proportion

The ratio of members in a sample exhibiting a particular attribute to the total sample size, often expressed as a percentage.

Standard Deviation

An indicator of the degree of spread or divergence from the average in a collection of data, showing the extent to which the data points vary from their average value.