Suppose That the Elasticity of Demand for Insulin Is 0

question 40

Multiple Choice

Suppose that the elasticity of demand for insulin is 0.1,the elasticity of demand for oranges is 1.2,and the elasticity of supply for insulin and oranges is 0.4.If the government imposes a 10 percent tax on both insulin and oranges,the decrease in the quantity of oranges is ________ the decrease in the quantity of insulin.

• A) larger than
• B) smaller than
• C) equals to
• D) not comparable to
• E) More information is needed to determine how the decrease in the quantity of oranges compares to the decrease in the quantity of insulin.

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Definitions:

Corpus Spongiosum

Median column of erectile tissue located between and ventral to the two corpora cavernosa in the penis; posteriorly it forms the bulb of the penis, and anteriorly it terminates as the glans penis; it is traversed by the urethra. In the female, it forms the bulb of the vestibule.

Mucous-Secreting Glands

Glands that produce and secrete mucus, which protects and lubricates various parts of the body, such as the respiratory and digestive tracts.

Cuboidal Epithelium

A type of epithelial tissue with cube-shaped cells, often found in glandular ducts and parts of the kidney, involved in secretion and absorption.

Male Urethra

The tube that conveys urine from the bladder to the outside of the body in males and also serves as a conduit for semen during ejaculation.