If the Supply of Automobiles Becomes More Inelastic,then a Tax

question 126

Multiple Choice

If the supply of automobiles becomes more inelastic,then a tax on automobiles is

• A) paid more by the buyers after the change than before.
• B) paid more by the sellers after the change than before.
• C) always split evenly between the buyers and the sellers.
• D) paid more by the government after the change than before.
• E) always paid entirely by the buyers.

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Definitions:

Norepinephrine

Neurotransmitter substance released from most of the postganglionic neurons of the sympathetic division; hormone released from the adrenal cortex that increases cardiac output and blood glucose levels; also called noradrenaline.

Myenteric Plexus

A network of neurons located between the layers of the gastrointestinal tract, playing a crucial role in the regulation of digestive tract motility.

Interstitial Cells

Cells located amongst the tissues of an organ, often referring to cells in the testes and ovaries that produce hormones.

Pacemaker Cells

Specialized cells within the heart's sinoatrial node that generate and regulate the heart's rhythm.