A Tax Is Imposed on Orange Juice

question 37

Multiple Choice

A tax is imposed on orange juice. Under what circumstances will consumers bear the burden from this tax?

• A) when the supply curve for orange juice is unit elastic
• B) when the supply curve for orange juice is perfectly inelastic
• C) when the demand for orange juice is perfectly inelastic
• D) when the demand for orange juice is perfectly elastic

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Definitions:

Sympathy

The feelings of pity and sorrow for someone else's misfortune, often prompting a desire to offer comfort or assistance.

Autonomy

The ability to assert one’s own needs in a relationship.

Guilt

A psychological condition that arises when an individual believes they have done wrong, violating moral or ethical standards.

Social-Learning View

A theory that emphasizes the role of observation, imitation, and modeling in acquiring new behaviors and skills.