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The Price Elasticity of Demand for a Particular Cancer Drug

question 51

Essay

The price elasticity of demand for a particular cancer drug is equal to zero and the price elasticity of supply is equal to 0.50.If a $1 excise tax is levied on producers, how much of this tax will eventually be paid by consumers?
A.$0
B.$1
C.$0.50
D.$1.50


Definitions:

Diathesis-Stress Model

Model that asserts that only when a diathesis or vulnerability interacts with a stress or trigger will a disorder emerge.

Vulnerability

The state in which there is a risk of encountering harm or assault, emotionally or physically.

Social Trigger

An environmental or interpersonal stimulus that influences one's emotional state or behavior.

Reuptake

A process in neurotransmission where neurotransmitters released into the synaptic gap are reabsorbed back into the pre-synaptic neuron, affecting the intensity and duration of neurotransmission.

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