The Elasticity of Demand for Chocolate Chip Cookies Is 0

question 238

Multiple Choice

The elasticity of demand for chocolate chip cookies is 0.6 and the elasticity of supply for these cookies is 1.9. If a tax is imposed on purchases of chocolate chip cookies, then the

• A) consumers would pay more of the tax.
• B) producers would pay more of the tax.
• C) tax would be equally shared by the consumers and the producers.
• D) consumers would pay the entire tax because their demand is less elastic than the producers' supply.

---

Definitions:

Bailment Relationship

A legal relationship in which physical possession of personal property is transferred from one party to another for a specific purpose, while ownership remains with the original party.

Negligent

Failure to take proper care in doing something, leading to damage or injury to others.

Lawful Action

Actions or behaviors that are in accordance with legal requirements and legislations.