Assume the Supply Curve for Product X Is Perfectly Elastic

question 220

Multiple Choice

Assume the supply curve for product X is perfectly elastic and that government imposes a $2-per-unit excise tax. We can conclude that the resulting

• A)increase in output will be greater the less elastic the demand curve.
• B)decrease in output will be greater the less elastic the demand curve.
• C)decrease in output will be greater the more elastic the demand curve.
• D)increase in output will be greater the more elastic the demand curve.

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Definitions:

Ctenophores

Ctenophores, also known as comb jellies, are marine invertebrates characterized by their eight rows of ciliary plates used for swimming.

Mesoglea

Jellylike layer between the epidermis and gastrodermis in cnidarians and ctenophores.

Cnidaria

A phylum of aquatic invertebrates known for their distinctive body structure, which includes nematocysts, and comprises jellyfish, corals, and sea anemones.

Corals

Marine invertebrates in the class Anthozoa that often live in compact colonies and are renowned for constructing large, intricate calcium carbonate structures.