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:

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first alone.

Reinforcement

In behavioral psychology, a process in which a behavior is strengthened by the outcome that follows, whether it's positive (reward) or negative (removal of an undesirable stimulus).

Punishment

A consequence that decreases the likelihood of a behavior being repeated.

Increase

A rise or growth in quantity, size, strength, or another measurable factor.