A $200 Increase in the Size of a Tax on a a Good

question 236

Multiple Choice

A $2.00 increase in the size of a tax on a good will only cause the price for buyers to increase by $2.00 if

• A) demand is perfectly inelastic.
• B) demand is perfectly elastic.
• C) demand is unit elastic.
• D) demand is inelastic, but not perfectly inelastic.
• E) demand is elastic, but not perfectly elastic.

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Definitions:

Figure-Ground Separation

Figure-ground separation is a concept in perception and visual design where the main subject (figure) is perceived as separate and distinguishable from the background (ground).

Perceptual Process

The sequence of steps that includes the reception and interpretation of sensory information by the brain, leading to an understanding of the environment.

Contrast

The difference in luminance or color that makes an object distinguishable from others and the background.

Intensity

The degree of strength, force, or concentration applied to an activity, effort, or phenomenon.