Suppose the Demand for Macaroni Is Inelastic and the Supply

question 74

Multiple Choice

Suppose the demand for macaroni is inelastic and the supply of macaroni is elastic,and the demand for cigarettes is inelastic and the supply of cigarettes is elastic.If a tax were levied on the sellers of both of these commodities,we would expect that the

• A) burden of both taxes would fall more heavily on the buyers than on the sellers.
• B) burden of the macaroni tax would fall more heavily on the sellers than on the buyers,and the burden of the cigarette tax would fall more heavily on the buyers than on the sellers.
• C) burden of the macaroni tax would fall more heavily on the buyers than on the sellers,and the burden of the cigarette tax would fall more heavily on the sellers than on the buyers.
• D) burden of both taxes would fall more heavily on the sellers than on the buyers.

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Definitions:

Condemn

To officially declare a building or structure as unsafe or unfit for use, or in legal terms, to legally seize private property for public use under the right of eminent domain, with compensation to the owner.

Separation of Powers

A principle of governance in which the state's responsibilities are divided into distinct branches (typically legislative, executive, and judicial) to prevent abuse of power and ensure checks and balances.

Executive

A high-ranking official or administrator, especially those who manage organizations or governmental agencies.

Legislative

Relating to the branch of government responsible for making laws, or the process involved in creating legislation.