If the Demand for Apples Is Highly Elastic and the Supply

question 86

Multiple Choice

If the demand for apples is highly elastic and the supply is highly inelastic, then a tax imposed on apples will be paid:

• A)largely by the sellers of apples with more elastic supply.
• B)largely by the buyers of apples with more elastic demand.
• C)equally by the sellers and buyers of apples.
• D)largely by the sellers of apples with less elastic supply.
• E)largely by the buyers of apples with unit elastic demand.

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Definitions:

Marginal Means

The means of each variable in a multivariate analysis, holding the values of other variables constant, used to interpret complex interactions.

Tension Modulus

A mechanical property of a material that measures its stiffness or resistance to deformation under tension.

ANOVA

Stands for Analysis of Variance, a statistical method used to compare means among three or more groups to see if there is a significant difference.

Interaction

A phenomenon in statistics and research design where the effect of two or more variables on an outcome is not simply additive but depends on combinations of variables.