Good a Has a Price Elasticity of Demand of 0

question 62

Multiple Choice

Good A has a price elasticity of demand of 0.27,while good B has a price elasticity of demand of 2.9.To raise the most tax revenue,the government should:

• A) place a unit tax on good A.
• B) place a unit tax on good B.
• C) raise the price elasticity of demand for good A.
• D) subsidise the production of good B.
• E) cut its spending for various social programs.

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Definitions:

PCA Button

Stands for Patient-Controlled Analgesia, a system that allows patients to self-administer a controlled amount of pain medication through the press of a button.

Placebo

A placebo is an inactive substance or treatment used as a control in experiments, testing the effect of a drug or medical treatment by comparison.

Physiotherapist

A healthcare professional specialized in the treatment of individuals to restore, maintain, and maximize their strength, function, movement, and overall well-being.

Mobility

The ability to move freely and with ease in one's environment, enhancing the quality of life.