If Neither the Demand nor Supply of a Good Is

question 134

Multiple Choice

If neither the demand nor supply of a good is perfectly elastic or inelastic,a tax on the good ________ consumer surplus and ________ producer surplus.

• A) decreases; decreases
• B) increases; increases
• C) decreases; increases
• D) increases; decreases
• E) decreases; does not change

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Definitions:

Freezing Temperatures

A temperature at or below the freezing point of water, 0°C (32°F), where liquid water turns into ice.

Prevailing Wind

The wind direction most often observed at a particular location over a certain period of time.

Sand Dunes

Naturally occurring hills or ridges of sand piled up by the wind or sometimes by water flow, found in deserts and coastal areas.

Rain Forests

Tropical forests characterized by high rainfall, dense canopy, and significant biodiversity.