If the Demand Curve for a Good Is Unit Price

question 81

Multiple Choice

If the demand curve for a good is unit price elastic and the supply curve is perfectly price elastic,a $1 specific tax imposed on the sellers of this good will

• A) shift the supply curve up vertically by $1.
• B) shift the demand curve down vertically by $1.
• C) not raise price at all.
• D) cause price to increase but by less than $1.

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Definitions:

Hypothalamus

A region of the brain that plays a crucial role in many essential functions, including hormone release and regulation of body temperature.

Neuron

A neuron is a nerve cell that is the basic building block of the nervous system, responsible for receiving, processing, and transmitting information through electrical and chemical signals.

Axon

An extended part of a neuron that transmits impulses away from the neuron's cell body.

Dendrite

Extensions of a neuron that receive signals from other neurons.