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.

Identify the elements of the consumer's immediate environment and their impact on marketing strategies.

Understand the role and significance of corporate partners in delivering products and services.

Grasp the concept of value-based marketing and its importance in competitive differentiation.

Comprehend the significance of macroenvironmental factors in shaping marketing strategies.

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Definitions:

European Americans

Individuals in the United States who trace their ancestry to Europe.

Health Psychology

A field of psychology focused on how biological, psychological, and social factors affect health and illness.

Behavioral Medicine

An interdisciplinary field combining both medical and psychological approaches to address and treat health problems.

Salutary Medicine

Relates to the practice of promoting health and well-being through preventive, curative, and rehabilitative measures; often focused on holistic care.