If Neither the Demand nor Supply of a Good Is

question 134

Multiple Choice

If neither the demand nor supply of a good is perfectly elastic or inelastic,a tax on the good ________ consumer surplus and ________ producer surplus.

• A) decreases; decreases
• B) increases; increases
• C) decreases; increases
• D) increases; decreases
• E) decreases; does not change

---

Definitions:

Biased

Showing an unfair preference or prejudice for or against something or someone.

Internal Validity

The extent to which a study can demonstrate a cause-and-effect relationship between its variables.

Epidemiological Study

Research conducted to understand the distribution and determinants of health-related states or events in specific populations, and to apply this study to control health problems.

Case Study

An in-depth analysis of an individual, group, event, or situation to explore and understand its complexities.