If the Elasticity of Demand Is 1 in Absolute Value

question 33

Multiple Choice

If the elasticity of demand is 1 in absolute value, and theelasticity of supply is 1 in absolute value, how much of a taxburden will the buyer bear relative to the seller?

• A)The buyer will bear more of the tax burden than will the seller.
• B)The seller will bear more of the tax burden than will the buyer.
• C)The buyer and seller will share the tax burden equally.(True Answer )Correct
• D)The buyer will not bear any of the tax burden since demand is unit elastic.

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Definitions:

Media Access Control (MAC)

A unique identifier assigned to network interfaces for communications on the physical network segment.

Physical Address

A unique identifier assigned to each network interface on a network. It's also known as a MAC (Media Access Control) address in the context of networking.

Network Adapter

A device that enables the computer (or peripheral) to communicate with the network using a common data communication language, or protocol.

Topology

in networking, describes the layout of connected devices and how they communicate.