Assume the Supply Curve for Product X Is Perfectly Elastic

question 36

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 less elastic the demand curve.
• C) decrease in output will be greater the more elastic the demand curve.
• D) increase in output will be greater the more elastic the demand curve.

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Definitions:

Restoration Ecology

A branch of ecology focused on the repair of damaged or destroyed ecosystems through active human intervention and the reestablishment of their pre-disturbance conditions.

Wildlife

Undomesticated animals living in natural habitats, including forests, deserts, grasslands, and bodies of water.

Coastal Degradation

The deterioration of coastal areas due to human activities or natural processes, leading to loss of ecosystems and habitats.

Mangrove Swamps

Coastal wetlands found in tropical regions, characterized by salt-tolerant trees and shrubs adapted to life in salty environments.