Good a Has a Perfectly Inelastic Demand and an Upward-Sloping

question 3

Multiple Choice

Good A has a perfectly inelastic demand and an upward-sloping supply curve. Good B has a perfectly inelastic supply and a downward-sloping demand curve. If the same sales tax is imposed on the sellers of both good A and good B, the price paid by

• A) buyers of good A rises by more than the price paid by buyers of good B.
• B) buyers of good B rises by more than the price paid by buyers of good A.
• C) buyers of good A rises by the same amount as the price paid by buyers of good B.
• D) More information is needed to determine whether the price paid by buyers of good A rises by more than, less than, or the same amount as the price paid by buyers of good B.

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Definitions:

Health Insurance Policy

A contract that requires an insurer to pay some or all of a person’s healthcare costs in exchange for a premium.

Physiological Needs

Basic human requirements for survival, such as food, water, shelter, and sleep, situated at the bottom of Maslow's hierarchy of needs.

Water, Food, Shelter

Basic human needs essential for survival, including clean drinking water, adequate nutrition, and secure housing.

Consumer Journey Map

A visual representation of all the touchpoints a consumer comes into contact with before, during, and after a purchase.