For a Given Positively Sloped Supply Curve,the Price Increase to Consumers

question 70

Multiple Choice

For a given positively sloped supply curve,the price increase to consumers resulting from a specific tax imposed on sellers will be

• A) greater the more price elastic demand is.
• B) greater the less price elastic demand is.
• C) equal to the entire tax when demand is perfectly elastic.
• D) equal to half of the tax whenever demand is unit elastic.

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Definitions:

Changes in Equity

Adjustments in the value of a company's shareholders' equity over a period due to investments, distributions, and earnings.

Net Income

The net income of a company, which is the amount left over from revenue after deducting all costs and taxes.

Service Revenues

Income earned from providing services as opposed to selling physical goods.

Dividends

Payments made by a corporation to its shareholder members, distributing earnings.