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:

Trade Promotions

Special marketing tactics aimed at increasing sales and market presence, often implemented through discounts or bulk offers.

Cycle Inventory

Cycle inventory refers to the portion of inventory that companies hold to fulfill regular sales orders, rotating regularly with demand.

Managerial Levers

are tools or mechanisms that managers can pull to influence the performance, direction, or strategy of a business, such as policy adjustments, operational changes, or incentive schemes.

Fixed Cost

Expenses that do not vary with the level of production or sales, such as rent, salaries, and insurance, providing a base level of costs in an operation.