Suppose That the Demand for Pasta Is Price Inelastic and the Supply

question 115

Multiple Choice

Suppose that the demand for pasta is price inelastic and the supply of pasta is price elastic,and that the demand for gasoline is price inelastic and the supply of gasoline is price elastic.If a tax were levied on the sellers of both of these commodities,who would we expect to have to pay most of the tax

• A)sellers of both goods
• B)buyers of both goods
• C)sellers of gaoline and buyers of pasta
• D)buyers of pasta and sellers of gasoline

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Definitions:

Wholesalers

Businesses that buy goods in large quantities from manufacturers and then sell them in smaller amounts to retailers or other businesses.

Foreseeable Plaintiffs

Individuals who could be reasonably expected to be affected by the defendant's actions or negligence and therefore may have grounds to sue.

Product Liability

Product liability refers to the legal responsibility of manufacturers and sellers for injuries caused by defective or dangerous products.

Strict Product Liability Theory

A legal doctrine that holds a seller, distributor, or manufacturer liable for any damages caused by a defective product, regardless of fault.