Suppose a Tax of $1 Per Unit Is Imposed on a Good.The

question 9

Multiple Choice

Suppose a tax of $1 per unit is imposed on a good.The more elastic the supply of the good,other things equal,the

• A)smaller is the response of quantity supplied to the tax.
• B)larger is the tax burden on sellers relative to the tax burden on buyers.
• C)larger is the deadweight loss of the tax.
• D)All of the above are correct.

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Definitions:

Prescription Drugs

Medications that legally require a medical prescription to be dispensed, typically regulated by legislation to require a medical diagnosis and supervision by a licensed healthcare provider.

Diabetes Testing Supplies

Products and devices used by individuals with diabetes to monitor their blood sugar levels, such as glucose meters, test strips, and lancets.

Reseller

A business that purchases goods or services with the intention of selling them to others, rather than consuming or using them.

General Services Administration

A U.S. government agency responsible for managing and supporting the basic functioning offices of the federal government, including procurement and property management.