If the Demand for a Good Is Highly Inelastic, a Tax

question 182

Multiple Choice

If the demand for a good is highly inelastic, a tax on the good

• A) places the burden of the tax equally on buyers and sellers
• B) permits sellers to pass most of the cost increase resulting from the tax on to the consumers of the product
• C) reduces the profits earned by sellers since they must write the check to pay the tax
• D) makes the demand more inelastic
• E) makes the demand more elastic

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Definitions:

Absenteeism

Absenteeism is the habitual non-presence of an employee at their job without a valid reason, often affecting productivity and morale.

Turnover

The rate at which employees leave a company and are replaced by new employees, often used as an indicator of job satisfaction and organizational health.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Quality

The degree to which a product, service, or process meets specified standards, satisfies customer expectations, or exhibits excellence.