Assume the Supply Curve for Product X Is Perfectly Elastic

question 58

Multiple Choice

Assume the supply curve for product X is perfectly elastic and that government imposes a $2 per unit excise tax.We can conclude that the resulting:

• A)increase in output will be greater the less elastic the demand curve
• B)decrease in output will be greater the more elastic the demand curve
• C)decrease in output will be greater the less elastic the demand curve
• D)increase in output will be greater the more elastic the demand curve
• E)change in output will be extremely small

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Definitions:

Chadwick Sign

A bluish discoloration of the cervix, vagina, and labia resulting from increased blood flow, usually an early sign of pregnancy.

Cervix

The lower part of the uterus that connects to the vagina and dilates during childbirth to allow for the passage of a baby.

Human Papilloma Virus

A group of viruses that can cause warts on the skin or mucous membranes and may lead to cancers such as cervical cancer.

Genital Warts

A sexually transmitted infection characterized by small, fleshy growths on the genital or anal area, caused by human papillomavirus (HPV).