Suppose That There Is a Tax of $5 Per Unit

question 54

Multiple Choice

Suppose that there is a tax of $5 per unit, and the demand curveis more elastic than the supply curve. Which of the followingstatements could be true?

• A)Buyers pay $3 of the tax.
• B)Buyers pay $1 of the tax.
• C)Sellers pay $1 of the tax.
• D)Sellers pay all of the tax.

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Definitions:

Time

The indefinite continued progress of existence and events in the past, present, and future regarded as a whole.

History Effects

Events that occur outside the experiment which may affect participants' responses within the experiment.

Measurement Period

The specific duration or time frame during which data is collected or observations are made in a study.

Manipulation

The process of deliberately altering variables in an experimental setting to observe the effects on dependent variables.