The Elasticity of Demand for a Good Is 1 and the Elasticity

question 175

Multiple Choice

The elasticity of demand for a good is 1 and the elasticity of supply is 0.8.Thus,imposing a tax on the good ________ the price kept by sellers and ________ the price paid by buyers.

• A) raises; raises
• B) raises; lowers
• C) lowers; raises
• D) lowers; lowers
• E) does not change; raises

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Definitions:

Virtue

Represents moral excellence and righteousness, often referring to qualities such as honesty, integrity, and compassion.

Ethics of Virtue

A branch of moral philosophy that emphasizes the role of character and virtue in moral philosophy rather than either doing one’s duty or acting to bring about good consequences.

Equal Employment Opportunity

Policies and regulations that ensure all individuals have an equal chance for employment, regardless of race, color, religion, sex, nationality, age, disability, or any other non-merit factor.

Union Substitution

Strategies employers use to address and mitigate worker demands and grievances without union involvement.