The Demand for Chocolate Is Perfectly Inelastic in Carritos Island

question 236

Multiple Choice

The demand for chocolate is perfectly inelastic in Carritos Island.If a tax is imposed on chocolate,________.

• A) the deadweight loss due to taxation will be high
• B) the deadweight loss due to taxation will be one
• C) consumers will stop consuming chocolate
• D) the tax burden will fall entirely on buyers

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Definitions:

Avoiding

The act of keeping away from or not doing something, often used in the context of behaviors or situations.

General Adaptation Syndrome

A theoretical framework describing the body's short-term and long-term reactions to stress, consisting of three stages: alarm, resistance, and exhaustion.

Metabolic Changes

Adjustments or alterations in the body's processes that involve the breakdown and conversion of nutrients into energy and other components essential for cell and organ function.

Glycogen

A form of glucose stored in the liver and muscles, serving as a primary energy reserve in animals and humans.