The Government of Healthyland Imposes a Tax on Sellers of Salt

question 113

Multiple Choice

The government of Healthyland imposes a tax on sellers of salt. The tax is $1.00 per kilogram. With no tax, the price of salt is $4.00 per kilogram. The demand for salt is perfectly inelastic and the elasticity of supply is 1.5. With the tax, the price of salt paid by buyers in Healthyland is

• A) $5.00 per kilogram.
• B) $3.50 per kilogram.
• C) $4.50 per kilogram.
• D) $4.00 per kilogram.

---

Definitions:

Overconfidence

Overconfidence refers to an individual's unwarranted belief in their own abilities or the correctness of their judgement, often leading to mistakes or failures.

Nonprogrammed Decisions

Decisions made in response to unique, novel, or complex situations that require a custom-tailored approach.

Group Decisions

The outcome or resolution reached through a process of deliberation and discussion among members of a group.

Ethical Decisions

Choices made based on moral principles and values, considering what is right and just.