Suppose the Demand for Toxic Waste Disposal Is Very Elastic

question 104

Multiple Choice

Suppose the demand for toxic waste disposal is very elastic. The government imposes an excise tax on toxic waste disposal. Who will pay the greater share of such a tax?

• A) customers of toxic waste disposal companies
• B) owners of toxic waste disposal companies
• C) the government
• D) All of them pay equally.

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Definitions:

Price Promotion

A marketing strategy that temporarily reduces the price of a product or service to stimulate consumer purchasing.

Low Demand

A situation where the desire and need for certain products or services are beneath expectations, often leading to surplus inventory and reduced sales.

Slow Period

Times of low activity or demand in a business or industry, often marked by reduced sales or production.

Supply Chain

The entire system of producing and delivering a product or service, from the supplier of raw materials to the end user.