"The Tax on Insulin in the Philippines Is Anywhere Between

question 109

Multiple Choice

"The tax on insulin in the Philippines is anywhere between 10 and 20 percent. If you are rich and living in the Philippines, this is not a problem, but if you are poor, then insulin becomes something that you cannot afford." If the government places the tax on sellers, what is the effect on the supply and demand curves?

• A) The demand curve stays the same and the supply curve shifts leftward.
• B) The demand curve shifts rightward and the supply curve stays the same.
• C) Both the demand and supply curves shift leftward.
• D) The demand curve shifts leftward and the supply curve stays the same.

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Definitions:

Poisson Distribution

A statistical distribution describing the likelihood of a certain number of events taking place within a specific time or space interval, given that these events happen at a fixed average rate and are independent of the timing of the previous event.

Variance

A statistical measure that represents the degree of spread or dispersion of a set of data values around their mean.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events happen with a known constant rate and independently of the time since the last event.