In a Market Where Supply and Demand Are Both Somewhat

question 72

Multiple Choice

In a market where supply and demand are both somewhat elastic,but supply is more elastic than demand,producers will bear less of the burden of a tax because

• A) consumers have a greater ability to change their behavior in response to the tax than producers do.
• B) producers are more likely to be responsible for paying the tax out of pocket.
• C) both parties have equal ability to change their behavior in response to the tax.
• D) consumers will experience higher prices as a result of the tax.
• E) producers have a greater ability to change their behavior in response to the tax than consumers do.

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Definitions:

Design Thinking

is a problem-solving approach that involves empathy, creativity, and rationality to meet user needs and solve complex issues.

Line Extension

The addition of new products to an existing product line of a brand, often in the same product category, to target a wider audience or offer more variety.

Disruptive Innovation

An innovation that significantly alters the way a market or industry functions, often displacing established competitors and reshaping the landscape.

Line Extension

A strategy that involves introducing additional items in the same product category under the same brand name, such as new flavors, forms, colors, added ingredients, or package sizes.