On Green Island, the Demand for Pencils Is Perfectly Elastic

question 39

Multiple Choice

On Green Island, the demand for pencils is perfectly elastic and the supply of pencils is perfectly inelastic. If a sales tax on pencils is introduced,

• A) the sellers pay the entire tax.
• B) no one pays the tax.
• C) the buyers pay the entire tax.
• D) the tax is split evenly between the buyers and sellers.

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Definitions:

ECU

Engine Control Unit, a type of electronic control unit that controls a series of actuators on an internal combustion engine to ensure optimal engine performance.

Master Program

A comprehensive or principal plan of study that leads to a graduate degree such as a Master's degree.

System Management

The process of overseeing and controlling the operations and performance of a system to ensure it meets certain standards or goals.

EEPROM

Electrically Erasable Programmable Read-Only Memory, a type of non-volatile memory used in computers and other devices to store small amounts of data that must be saved when power is removed.