When a Tax Is Imposed on a Good for Which

question 91

Multiple Choice

When a tax is imposed on a good for which the supply is relatively elastic and the demand is relatively inelastic,

• A)buyers of the good will bear most of the burden of the tax.
• B)sellers of the good will bear most of the burden of the tax.
• C)the effective price paid by buyers of the good will decrease.
• D)the size of the market for the good will expand.

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Definitions:

Cognitive Therapy

A type of psychotherapy that emphasizes recognizing and changing negative thoughts and behaviors to improve mental health.

Antidepressant Medication

Drugs prescribed to alleviate symptoms of depression by adjusting chemicals in the brain.

Neurotransmitter Impulses

Electrical and chemical signals that transmit information between neurons in the brain and nervous system.

Response

The reaction or outcome following the application of a stimulus, treatment, or intervention in a health context.