Reference: Ref 6-4 Suppose That There Is a Tax of $5

question 38

Multiple Choice

Reference: Ref 6-4 Suppose that there is a tax of $5 per unit, and the demand curve is more elastic than the supply curve. Which of the following statements could be true?

• A) Buyers pay $3 of the tax.
• B) Buyers pay $1 of the tax.
• C) Sellers pay $1 of the tax.
• D) Sellers pay all of the tax.

---

Definitions:

Canalization

The tendency of growth rates to return to genetically determined patterns after undergoing environmentally induced change.

Genetic Tendency

A predisposition for certain traits or conditions to be passed down from parents to offspring through their genes.

Differentiation

The process by which behaviors and physical structures become more specialized.

Visual Cliff

An experimental apparatus used to study infants' perception of depth and their ability to assess risks of falling.