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:

Market Orientation

An organization with a market orientation focuses its efforts on continuously collecting information about customers’ needs, sharing this information across departments, and using it to create customer value.

Post-it Flags

Small, colorful strips of adhesive paper used for marking pages or sections in documents for easy reference.

Environmental Friendly

Practices or products that minimize harmful effects on the environment through reduced pollution or conservation of resources.

Scotch Tape

A brand of pressure-sensitive adhesive tape widely used for sealing, mending, labeling, and mounting in various applications.