How Successful Would a $1 Excise Tax on Each Little

question 77

Multiple Choice

How successful would a $1 excise tax on each Little Caesar's pizza be in generating revenue if Little Caesar's is the only pizza chain that is taxed?

• A) Many people like Little Caesar's, so demand is inelastic and the tax revenue generated will be large.
• B) You can get pizza at many other place, which makes the demand for Little Caesar's relatively elastic and, as a result, the tax revenue collected will be small.
• C) The supply of Little Caesar's pizza is perfectly inelastic, so this tax would not generate any revenue.
• D) The demand for Little Caesar's pizza is perfectly elastic, so the tax will not generate any revenue.
• E) The supply of Little Caesar's pizza is perfectly elastic, so this tax will generate the maximum amount of revenue.

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Definitions:

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Individuals who are female and hail from or are citizens of the United Kingdom, encompassing England, Scotland, Wales, and Northern Ireland.

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Another name for World War I, a global conflict that occurred from 1914 to 1918 involving many of the world's great powers, marked by massive casualties and extensive trench warfare.

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A key political leader during the Russian Provisional Government of 1917, who played a significant role in the events leading up to the Bolshevik Revolution.