Suppose the Supply Curve and the Demand Curve Both Have

question 93

Multiple Choice

Suppose the supply curve and the demand curve both have unitary elasticity at all prices.The price increase to consumers resulting from a specific tax of $1 imposed on sellers will be

• A) $1.
• B) 50 cents.
• C) zero.
• D) impossible to calculate without knowing the slope of the supply curve.

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Definitions:

Cerebellum

A major feature of the hindbrain of all vertebrates responsible for motor control, and possibly also some cognitive functions.

Acquired Reflexes

Learned reflex actions that develop as a result of repeated exposure to a stimulus, differing from innate reflexes present at birth.

Biological Clock

An internal mechanism in organisms that controls the timing of various biological functions, such as sleep-wake cycles and hormonal changes.

Daily Rhythms

Natural patterns of activity that follow a roughly 24-hour cycle in living organisms, often referred to as circadian rhythms.