Suppose a $1 Tax Is Placed on a Good

question 337

Multiple Choice

Suppose a $1 tax is placed on a good. The more elastic the supply of the good, the

• A) larger the increase in the after-tax price.
• B) smaller the decrease in the quantity sold.
• C) less of the tax will be paid by the buyers.
• D) more of the tax will be paid by the sellers.

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Definitions:

Pits

Small depressions or cavities on a surface or in a structure, often found in fruits or in the landscape.

Perforation Plates

Structures found in the water-conducting vessels of some plants, containing large pores that allow water to flow from one vessel element to another.

Sieve Plates

Specialized structures found in the phloem of plants that facilitate the flow of nutrients by containing pores through which sap can flow between cells.

Vascular Cylinder

Of a plant root, central column that consists of vascular tissue, pericycle, and supporting cells.