If a Per Unit Tax Is Imposed, but the Quantity

question 12

Multiple Choice

If a per unit tax is imposed, but the quantity supplied and demanded does not change then:

• A) the demand is perfectly inelastic.
• B) the supply is perfectly inelastic.
• C) there is no deadweight loss.
• D) All of the above.

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Definitions:

Act of Commission

A positive action or deed that violates a law or legal obligation, leading to liability.

Act of Omission

Failure to take an action that is legally or morally required, leading to harm or injury.

Criminal Act

An action that constitutes an offense and is punishable by law.

Misdemeanor

A criminal offense that is less serious than a felony and is usually punishable by fines, penalties, or a jail term of less than one year.