If the Supply Curve Is Perfectly Inelastic and an Excise

question 38

Multiple Choice

If the supply curve is perfectly inelastic and an excise tax is imposed

• A)all of the tax is paid by buyers
• B)all of the tax is paid by sellers
• C)the market price will rise by the amount of the tax
• D)the market price will fall by the amount of the tax
• E)the tax is divided equally between buyers and sellers

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Definitions:

Primary Control Strategies

Psychological strategies that involve changing the external world to match one's goals and desires.

Aspirations

Hopes or ambitions of achieving something, often related to personal goals or career objectives.

The Reminiscence Bump

A phenomenon in which people have enhanced memory for events that occurred during adolescence and early adulthood.

Autobiographical Memories

These are memories of one's own life experiences, enabling individuals to recall personal events and the emotions associated with them.