If the Demand for Good X Is Perfectly Inelastic and a Tax

question 186

Multiple Choice

If the demand for good X is perfectly inelastic and a tax is levied on the producers of each unit:

• A)consumers pay the entire tax,and deadweight loss will occur because the equilibrium quantity of good X falls.
• B)consumers pay the entire tax,and there is no deadweight loss because the equilibrium quantity of good X remains constant.
• C)consumers and producers share the burden of the tax,and there is no deadweight loss because the equilibrium quantity of good X remains constant.
• D)producers pay the entire tax,and deadweight loss will occur because the equilibrium quantity of good X falls.

Understand the federal government's strategies to reduce greenhouse gas emissions through transportation policies.

Recognize the implications of antitrust laws and practices on major technology companies.

Understand the concept of giving legal personhood to natural entities and the arguments for it.

Understand the relationship between specific brain areas and the occurrence of disorders like obsessive-compulsive disorder.

---

Definitions:

Precapillary Sphincters

Circular muscular valves located at the entrance of capillary beds, controlling blood flow into those beds.

Thoroughfare Channels

In traditional Chinese medicine, energy pathways that allow Qi and blood to circulate throughout the body, connecting different organs and bodily functions.

Contracting

The process of muscle fibers shortening to produce movement or increase tension against a load.

Pressure Gradients

The difference in pressure between two points in a fluid or gas, driving the movement of the fluid from areas of high pressure to areas of low pressure.