If the Elasticity of Demand Is 2 in Absolute Value

question 142

Multiple Choice

If the elasticity of demand is 2 in absolute value, and the elasticity of supply is 1 in absolute value, how much of a tax burden will the buyer bear relative to the seller?

• A) The buyer will bear more of the tax burden than will the seller.
• B) The seller will bear more of the tax burden than will the buyer.
• C) The buyer and seller will share the tax burden equally.
• D) The buyer will not bear any of the tax burden since the demand curve is twice as elastic as supply.

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Definitions:

Protein Degradation

The breakdown of proteins into amino acids or smaller peptides, a crucial process for cellular regulation and the removal of damaged or unnecessary proteins.

Genomic Imprinting

An epigenetic phenomenon by which certain genes are expressed in a parent-of-origin-specific manner.

Epigenetics

The study of heritable changes in gene expression that do not involve changes to the DNA sequence.

General Transcriptional Machinery

A complex of proteins and enzymes in cells necessary for the transcription of DNA into RNA, involving various transcription factors and RNA polymerase.