In the Market for Good X-A Necessity Good Without Any

question 94

Multiple Choice

In the market for Good X-a necessity good without any good substitutes-the workers and capital in the industry can easily find work producing other goods. The burden of the tax is likely to fall:

• A) more heavily on buyers, given that demand is more inelastic than supply.
• B) evenly between buyers and sellers.
• C) more heavily on sellers, given that supply is more inelastic than demand.
• D) more heavily on buyers, given that demand is more elastic than supply.

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Definitions:

Inductive Reasoning

A logical process in which multiple premises, collected through observation, are used to arrive at a probable conclusion.

Concrete Operational Thought

Piaget’s term for the ability to reason logically about direct experiences and perceptions.

Formal Operational Thought

The final stage of cognitive development (according to Piaget), characterized by the ability to think abstractly, logically, and systematically.

Imaginary Audience

A psychological concept where an individual imagines and believes that multitudes of people are enthusiastically listening to or watching them.