If the Government Eliminates a Tax on a Good with a Perfectly

question 158

Multiple Choice

If the government eliminates a tax on a good with a perfectly elastic supply,who benefits most?

• A) buyers
• B) sellers
• C) buyers if the demand is also perfectly elastic, otherwise sellers
• D) buyers if the demand is unit elastic, otherwise sellers
• E) Buyers and sellers benefit equally.

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Definitions:

Standard of Living

The degree of prosperity, comfort, material possessions, and essential needs accessible to a specific socioeconomic group or region.

National Income

The total value of all goods and services produced by a country over a specific period, typically a year, representing the economic performance of a nation.

Economic Models

Simplified representations of complex economic processes, used to predict economic outcomes or understand economic behavior.

Illegal Immigration

Refers to the movement of individuals into a country in violation of its immigration laws.