In the Case of a Per-Unit Tax on a Good

question 9

Multiple Choice

In the case of a per-unit tax on a good, which of the following situations will lead to the greatest change in price?

• A)Supply and demand are relatively inelastic.
• B)Supply and demand are relatively elastic.
• C)Demand is relatively elastic and supply is relatively inelastic.
• D)Demand is relatively inelastic and supply is relatively elastic.
• E)Both supply and demand do not exist.

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Definitions:

Africans

Refers to the people native to the African continent, encompassing a wide range of cultures, ethnicities, and nations.

Americas

A collective term for the continents of North America and South America, including all its countries and regions.

Negros De Ganhos

A term from Brazilian history referring to enslaved Africans who were allowed to work for their own earnings, albeit under conditions set by slaveholders.

Roman Catholicism

The largest branch of Christianity, led by the Pope, characterized by its liturgical traditions and doctrines like the sacraments and the teaching authority of the Church.