Which of the Following Is Definitely True for a Per-Unit

question 7

Multiple Choice

Which of the following is definitely true for a per-unit tax in the goods market where neither demand nor supply is perfectly inelastic:

• A)The more price inelastic demand is, the lower deadweight loss will be.
• B)The more price inelastic supply is, the higher deadweight loss will be.
• C)A demand become more price inelastic, the after tax price for consumers rises.
• D)Both (a) and (b)
• E)Both (b) and c
• F)Both (a) and (c)
• G)All of the above
• H)None of the above

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Definitions:

Factory Overhead

Refers to the indirect costs associated with manufacturing, not directly tied to a specific unit of product, such as utilities and maintenance expenses.

Assembler's Wages

The compensation paid to workers responsible for assembling products or components in a manufacturing process.

Factory Overhead

All the indirect costs associated with manufacturing, excluding direct materials and direct labor. Examples include utilities, depreciation on manufacturing equipment, and factory manager salary.

President's Salary

The compensation awarded to the president of a company or organization, comprising base salary and potentially bonuses or other earnings.