If the Demand for a Product Is Perfectly Inelastic and the Supply

question 280

Multiple Choice

If the demand for a product is perfectly inelastic and the supply curve is upsloping, a $1 excise tax per unit of output will

• A)raise the price by less than $1.
• B)raise the price by more than $1.
• C)raise the price by $1.
• D)lower the price by $1.

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Definitions:

Variables

Elements, features, or factors that are liable to vary or change.

Sample Size

The number of participants or observations included in a study, which can affect the reliability and validity of the research results.

Intellectual Disability

A developmental disability characterized by significant limitations in both intellectual functioning and in adaptive behavior, which covers a range of everyday social and practical skills.

Older Mothers

Refers to women who become mothers at a later age, typically in their late 30s or older, which can involve different medical and psychological considerations compared to younger mothers.