Use the Figure Below to Answer the Following Question(s)

question 168

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 4-8

Refer to Figure 4-8. Which of the following is true?

• A) The tax increases the price of soft coal by $40 per ton.
• B) Since the demand for soft coal is more inelastic than the supply, consumers bear most of the burden of the tax.
• C) Since the demand for soft coal is more elastic than the supply, suppliers of soft coal bear most of the burden of the tax.
• D) Since the supply of soft coal is highly inelastic, the primary burden of the tax is imposed on the consumers of soft coal.

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Definitions:

Egas Moniz

A Portuguese neurologist known for pioneering the development of cerebral angiography and the controversial prefrontal leucotomy, which won him a Nobel Prize in Physiology or Medicine in 1949.

Lobotomy

A surgical procedure used historically to treat mental illness, involving severing connections in the brain's prefrontal cortex, now widely discredited.

Pharmacotherapy

The treatment of diseases through the administration of drugs.

Cingulotomy

A neurosurgical procedure that targets the cingulate gyrus to treat certain psychiatric disorders, such as OCD and major depression, by severing connections in the brain.