Suppose the Demand Curve Is Perfectly Inelastic and the Supply

question 117

Multiple Choice

Suppose the demand curve is perfectly inelastic and the supply curve is upward sloping.The price sellers receive after a specific tax is imposed on sellers

• A) is less than before the tax.
• B) is higher than before the tax.
• C) is unchanged.
• D) depends on the supply elasticity.

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Definitions:

Growth

An increase in the value or size of something, often used in economic contexts to refer to companies or economies.

Sales Forecast

An estimate of the amount of sales that a business expects to achieve in a future period.

Finished Goods Inventory

Finished Goods Inventory consists of all completed products that are ready for sale but have not been sold yet.

Production Units

The measurable amount of goods or services produced over a specific period of time.