Suppose That the Supply of Insulin Is Perfectly Elastic and the Demand

question 183

Multiple Choice

Suppose that the supply of insulin is perfectly elastic and the demand for insulin perfectly inelastic. Then the result of an excise tax would be

• A)a significant increase in government revenue and a significant decrease in the quantity consumed.
• B)a significant decrease in the quantity consumed with no change in government revenue.
• C)a significant increase in government revenue and no change in the quantity consumed.
• D)no increase in government revenue and no change in the quantity consumed.

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Definitions:

Rayed Crater

A type of crater characterized by radiating lines or bands of debris thrown out by the impact that formed the crater.

Mare

A dark, low-lying, relatively smooth area on the Moon consisting of basalt.

Lunar Highlands

Rough, mountainous regions on the moon's surface, characterized by their lighter color and higher altitude than the lunar maria.

Mare

Latin for "sea," often used to describe the large, dark basaltic plains on the Moon, formed by ancient volcanic eruptions.