The Only Way Price and Quantity Will Not Change When

question 90

Multiple Choice

The only way price and quantity will not change when a tax is assessed on producers is for

• A)demand to be perfectly inelastic.
• B)supply to be perfectly elastic and demand to be perfectly inelastic.
• C)supply to be perfectly elastic.
• D)supply to be perfectly inelastic.
• E)demand to be perfectly elastic.

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Definitions:

Total Purchases

The aggregate amount of goods and services bought over a certain period of time.

Percentage of Sales

A financial metric or approach calculating a certain cost or investment as a proportion of sales revenue, useful in budgeting and analysis.

Industry to Industry

Transactions or interactions that occur between businesses within the same industry, often related to supply chain, services, or B2B sales.

Organizational Risk Management

The systematic process of identifying, assessing, managing, and monitoring potential risks that could impact an organization's operations, reputation, or objectives.