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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:

Ulna

A bone in the forearm that runs from the elbow to the smallest finger, and when in anatomical position, it is found on the medial side of the forearm.

Tibia

The shinbone or larger and stronger of the two bones in the lower leg, extending from the knee to the ankle.

Cervical

Relating to the neck or the cervix, which is the lower part of the uterus opening into the vagina.

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