'Assume That the Supply of Forest Products Is Relatively Inelastic

question 32

Multiple Choice

'Assume that the supply of forest products is relatively inelastic and the supply of coffee is relatively elastic'.According to this statement, a tax levied on coffee will cause the loss of producer surplus to be:

• A)relatively large
• B)relatively small
• C)zero
• D)either small or large, depending on the elasticity of demand

---

Definitions:

Sarbanes-Oxley Act

The Sarbanes-Oxley Act (SOX) is a law passed by U.S. Congress in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to securities laws, including those regarding financial statements.

Financial Controls

Procedures, policies, and means by which an organization monitors and manages its financial resources and operations.

Information Processing

The process of gathering, manipulating, storing, retrieving, and classifying recorded information.

Accuracy Issue

A problem or challenge associated with the correctness or preciseness of information, data, or outcomes.