If the Market Supply Curve Is Perfectly Elastic and an Excise

question 63

Multiple Choice

If the market supply curve is perfectly elastic 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 tax burden is divided equally between buyers and sellers
• D)the market price will not change
• E)the market price will fall by the amount of the tax

Comprehend the key determinants of investment according to Keynesian theory and how they influence economic cycles.

Understand the difference between affect and emotion.

Comprehend the various theories of emotion.

Identify the impact of physiological responses on emotional experiences.

---

Definitions:

Difference Threshold

The minimum difference in stimulation that a person can detect 50 percent of the time.

Relative Magnitude

The comparison of the size, extent, or importance of something in relation to another.

Difference Threshold

The least variation in stimulation that an individual is able to recognize 50% of the occasions, commonly termed as the just noticeable difference (JND).

Marginal Intensity

Marginal intensity refers to the change in the level of intensity or satisfaction gained from consuming an additional unit of a resource or performing an additional unit of activity.