Suppose the Cost of Breaking the Law Is Imposed on the Buyers

question 106

Multiple Choice

Suppose the cost of breaking the law is imposed on the buyers of an illegal good.This action will have its biggest impact on quantity if the demand for the good is

• A)inelastic or the supply is inelastic.
• B)elastic or the supply is elastic.
• C)elastic or the supply is inelastic.
• D)inelastic or the supply is elastic.
• E)perfectly inelastic.

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Definitions:

Information Technology

The use of computers, storage, networking, and other physical devices, infrastructure, and processes to create, process, store, secure, and exchange all forms of electronic data.

Step-down Method

A cost allocation method used to allocate overhead costs to departments or products, moving sequentially from departments with the highest overhead costs to those with the least.

Service Department

A service department is a unit within an organization that provides support services to other departments, rather than directly contributing to revenue.

Operating Department

A department in which the central purposes of the organization are carried out.