Suppose That Price Elasticity of Demand Is Relatively Inelastic for Good

question 44

Multiple Choice

Suppose that price elasticity of demand is relatively inelastic for good X.If the price elasticity of supply for good X is elastic and an excise tax is imposed on good X,who will bear the greater burden of the tax?

• A) consumers
• B) producers
• C) both consumers and producers equally
• D) government

Understand the concepts and implications of heredity on human development.

Explain the methods and importance of research in developmental psychology.

Understand the fundamental concepts of developmental psychology.

Identify the stages of human development and their associated challenges according to Erikson's theory.

---

Definitions:

Risk-Free Return

The return on investment with no risk of financial loss, often represented by the yield on government securities.

Sharpe's Measure

A ratio used to evaluate the risk-adjusted return of an investment, comparing its excess return over the risk-free rate to its standard deviation of returns.

Risk-Free Return

The theoretical return attributed to an investment with zero risk, often associated with the return on government bonds.

Monarch Stock Fund

A hypothetical or specific mutual fund focusing on stocks, possibly structured around companies with substantial market influence or leadership.