If the Government Institutes a Specific Tax for a Good

question 94

Multiple Choice

If the government institutes a specific tax for a good that has a perfectly inelastic demand curve

• A)the producer passes the entire tax on to the consumer.
• B)the producer must absorb the entire tax.
• C)the producer can generally only pass part of the tax onto the consumer.
• D)the equilibrium price drops.

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Definitions:

Species-Specific Behaviors

Actions or reactions that are characteristic to a particular species, often innate and crucial for survival, such as mating rituals or territorial defense.

Sociocultural Perspective

A theory in psychology that emphasizes the influence of societal norms and culture on individual behavior and cognitive processes.

Human Diversity

The vast range of differences among humans, including ethnicity, race, gender, sexuality, age, physical abilities, religion, and political beliefs.

Biological Perspective

A psychological viewpoint that analyzes human and animal behavior through the lens of biological processes, including genetics and brain functions.