Scenario 5.1 The Demand for Noodles Is Given by the Following Equation

question 44

Multiple Choice

Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P_x. Assume that P = $8, I = 200, and P_x = $10.
-If the demand for liquor is elastic and the supply of liquor is inelastic, when the government increases liquor tax, _____.

• A)most of the tax will be paid by the consumer
• B)most of the tax will be paid by the producer
• C)all of the tax will be paid by the consumer
• D)all of the tax will be paid by the producer
• E)the tax will be paid by the retailer

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Definitions:

Ventrolateral surface

The surface of a body part or organ that is positioned toward the front and side.

Triceps Brachii

A muscle located at the back of the upper limb, responsible for extending the forearm.

Brachialis

A muscle in the upper arm that flexes the elbow joint.

Rectus Abdominis

A long muscle in the front of the abdomen that assists in breathing and stabilizes the core during movements.