If Demand for Good Is Very Inelastic and Supply for the Good

question 70

Multiple Choice

If demand for good is very inelastic and supply for the good is very elastic a sales tax imposed on sellers will cause the price received by sellers

• A) would not change very much.
• B) would rise by more than the amount of the tax.
• C) would fall by an amount of the tax.
• D) would fall by more than the amount of the tax.

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Definitions:

Basic Trust

A foundational sense of confidence in the predictability and reliability of the world, often established in early childhood.

Conservation

Understanding that specific properties of objects remain the same despite changes in the object's form or appearance.

Egocentrism

A cognitive bias where an individual has difficulty understanding viewpoints different from their own.

Sensorimotor Stage

The earliest stage in Piaget's theory of cognitive development, lasting from birth to about age 2, where infants learn about the world primarily through sensory experiences and manipulating objects.