If Supply Is Perfectly Inelastic and Demand Is Relatively Elastic

question 108

Multiple Choice

If supply is perfectly inelastic and demand is relatively elastic, the incidence of an excise tax

• A) falls primarily on consumers.
• B) falls entirely on producers.
• C) is shared evenly by consumers and producers.
• D) falls entirely on consumers.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that becomes associated with a conditioned stimulus through conditioning.

Dentist's Drill

A tool used by dentists to remove decay from teeth and prepare them for fillings.

Cringing

A physical or emotional reaction of discomfort, embarrassment, or fear, often characterized by shrinking back or cowering.

Classical Conditioning

The procedure of learning by which two stimuli are frequently paired, causing a response initially prompted by the second stimulus to ultimately be prompted by the first stimulus.