When the Demand for a Good Is Relatively More Elastic

question 85

Multiple Choice

When the demand for a good is relatively more elastic than its supply, _____.

• A)the proportion of the tax on the good paid by the consumers is greater than that paid by the producers
• B)the proportion of the tax on the good paid by the producers is greater than that paid by the consumers
• C)government will impose a binding price ceiling
• D)government will impose a binding price floor
• E)government will impose a price ceiling that is not binding

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Definitions:

Mild Soap

Mild soap is a type of cleansing agent that is less harsh on the skin, designed to effectively cleanse without stripping the skin of its natural oils.

Moisturizing Lotion

A topical preparation used to hydrate and soften the skin, often containing a combination of emollients and humectants.

Earplugs

Devices inserted in the ear canal to protect the wearer's ears from loud noises or to prevent water from entering.

Auditory Nerves

The cranial nerves that transmit sound information from the inner ear to the brain.