When a Tax Is Imposed on a Good for Which

question 14

Multiple Choice

When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic,

• A)buyers of the good will bear most of the burden of the tax.
• B)sellers of the good will bear most of the burden of the tax.
• C)buyers and sellers will each bear 50 percent of the burden of the tax.
• D)both equilibrium price and quantity will increase.

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Definitions:

CS

Acronym for Conditioned Stimulus, a previously neutral stimulus that, after being associated with an unconditioned stimulus, elicits a conditioned response.

Adaptability

The ability to adjust to new conditions or environments, demonstrating flexibility and resilience.

Cognition

Gaining understanding and knowledge through the processes of thought, life experiences, and sensory engagement.

Conditioning

A method of altering behavior in which an individual learns to connect a previously neutral stimulus with a behavior they want to adopt.