Use the Information in the Graph to Answer the Following

question 18

Multiple Choice

Use the information in the graph to answer the following question. Which of the following claims is best supported using the graph?

• A) Plowing has no effect on the number of earthworms in the soil.
• B) More earthworms are found in the soil in spring than in fall.
• C) Plowed soil contains more earthworms than unplowed soil.
• D) Unplowed soil contains more earthworms than plowed soil.

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Definitions:

Perfectly Inelastic

Describes a situation in which the quantity demanded of a good does not change regardless of changes in its price.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is unachievable.

Tax

A required financial fee or another kind of duty enforced on a taxpayer by government authorities, designed to raise funds for government outlays and a range of public expenses.

Price-Elastic Supply

A situation where the quantity supplied of a good changes significantly as a result of changes in its price.