The Burden of a Per Unit Tax on a Product

question 11

Multiple Choice

The burden of a per unit tax on a product will fall primarily on producers when:

• A) the tax is collected from customers.
• B) demand is highly elastic with respect to price.
• C) demand is highly inelastic with respect to price.
• D) the tax is collected from producers.

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Definitions:

Fleshy Leaves

Thickened leaves adapted for water storage, common in plants that live in arid environments.

Bulbs

Underground storage organs, consisting of a short stem surrounded by fleshy scales (leaves), used for plant propagation.

Alternate Leaf

A pattern of leaf arrangement on a stem where each leaf emerges at different points, creating a spiral or alternate configuration.

Node

A point on a stem where leaves, branches, or flowers originate, often associated with growth and the formation of new tissue.