Suppose That the Supply of Insulin Is Perfectly Elastic and the Demand

question 183

Multiple Choice

Suppose that the supply of insulin is perfectly elastic and the demand for insulin perfectly inelastic. Then the result of an excise tax would be

• A)a significant increase in government revenue and a significant decrease in the quantity consumed.
• B)a significant decrease in the quantity consumed with no change in government revenue.
• C)a significant increase in government revenue and no change in the quantity consumed.
• D)no increase in government revenue and no change in the quantity consumed.

---

Definitions:

Social Status

The position or rank of an individual within a social hierarchy, often determined by factors like wealth, occupation, or group affiliations.

High Density

Refers to situations or environments where there is a high concentration of individuals or objects within a given area.

Feelings of Crowding

A subjective sensation of discomfort or stress caused by a perceived lack of space due to the high density of people or objects.

Concept of Density

A measure of mass per unit volume of a substance, often used in physics and chemistry to characterize materials.