In a Market Where Supply and Demand Are Equally Elastic,producers

question 2

Multiple Choice

In a market where supply and demand are equally elastic,producers and consumers will share equally the burden of a tax because

• A) producers will simply raise the price of their output in response to the tax.
• B) consumers will buy less of the good in question once the tax is imposed.
• C) the tax is more likely to be paid out of pocket by producers.
• D) the government doesn't care who pays the tax as long as the revenue is collected.
• E) both have equal ability to change their behavior in response to the tax.

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Definitions:

Taproot

A primary root that grows vertically downward and gives off small lateral roots.

Nutritive Tissue

Tissue within an organism that provides essential nutrients for growth and development.

Pine Seed

The seed of a pine tree, often known as a pine nut, used for reproduction of the species and as a food source for wildlife and humans.

Triploid

An organism or cell having three sets of chromosomes instead of the usual two.