A $200 Increase in the Size of a Tax on a a Good

question 236

Multiple Choice

A $2.00 increase in the size of a tax on a good will only cause the price for buyers to increase by $2.00 if

• A) demand is perfectly inelastic.
• B) demand is perfectly elastic.
• C) demand is unit elastic.
• D) demand is inelastic, but not perfectly inelastic.
• E) demand is elastic, but not perfectly elastic.

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Definitions:

Forecasting

The process of predicting future events, trends, and behaviors based on historical data and analysis.

Objective Setting

The process of establishing specific, measurable, attainable, relevant, and time-bound (SMART) goals for an organization or individual.

Planning

The process of outlining organizational goals, strategies, and actions necessary to achieve those goals.

Semi-Fixed Marketing Cost

Costs associated with marketing that have both fixed and variable elements, changing with the level of output or sales to some degree, but not proportionately.