If a Tax Is Imposed on a Good with a Perfectly

question 140

Multiple Choice

If a tax is imposed on a good with a perfectly elastic demand,the burden of the tax will be borne

• A) by both consumers and producers equally.
• B) by consumers alone.
• C) by producers alone.
• D) mostly by consumers but partially by producers.
• E) mostly by producers but partially by consumers.

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Definitions:

Deceptive Advertising

Advertising that misleads consumers, either by making unjustified claims about a product’s performance or by omitting a material fact concerning the product’s composition or performance.

Scientific Evidence

Information obtained through scientific methods that are used to support or refute a hypothesis, theory, or claim.

Marketing Claims

Statements made by companies about their products or services intended to attract consumers.

Deceptive Advertising

Marketing practices involving false claims or misleading statements to trick consumers into buying a product or service.