Figure 4-20 -Refer to Figure 4-20. the Burden of the Tax on the Tax

question 165

Multiple Choice

Figure 4-20
-Refer to Figure 4-20. The burden of the tax on sellers is

• A) $1.00 per unit.
• B) $1.50 per unit.
• C) $2.00 per unit.
• D) $3.00 per unit.

---

Definitions:

Elasticities

Measures of how much the quantity demanded or supplied of a good responds to changes in prices, income, or other factors.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various price levels at a given point in time.

Supply

The total amount of a specific good or service available for purchase at any given price level, influenced by costs, technological innovations, and other factors.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.