If Demand for a Product Is Perfectly Inelastic, a Tax

question 28

Multiple Choice

If demand for a product is perfectly inelastic, a tax of $1 per unit imposed on sellers will

• A)not affect the market price of the product.
• B)cause the market price to rise by $1 per unit.
• C)cause the market price to decline by $1 per unit.
• D)cause the market price to rise by less than $1 per unit.

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Definitions:

Autosomes

Chromosomes that are not involved in determining the sex of an organism, typically making up the majority of an organism's chromosomes.

Zygote

The initial cell formed when a new organism is produced by the union of sperm and egg cells, marking the beginning of embryonic development.

Chromosomes

Structures made of DNA and proteins found in the nucleus of most living cells, carrying genetic information in the form of genes.

Monozygotic (MZ) Twins

Twins who originate from a single fertilized egg, resulting in individuals with identical genetic makeup.