Suppose a Tax Is Imposed on Baseball Bats

question 37

Multiple Choice

Suppose a tax is imposed on baseball bats.In which of the following cases will the tax cause the equilibrium quantity of baseball bats to shrink by the smallest amount?

• A)The response of buyers to a change in the price of baseball bats is strong,and the response of sellers to a change in the price of baseball bats is weak.
• B)The response of sellers to a change in the price of baseball bats is strong,and the response of buyers to a change in the price of baseball bats is weak.
• C)The response of buyers and sellers to a change in the price of baseball bats is strong.
• D)The response of buyers and sellers to a change in the price of baseball bats is weak.

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Definitions:

Resistance

The act of opposing or standing against something, often used in the context of social and political movements.

Martin Luther King, Jr.

An American Baptist minister and activist who became the most visible spokesperson and leader in the civil rights movement from 1955 until his assassination in 1968.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.

Oppressor

An individual, group, or institution that exercises authority or power over others in a burdensome, cruel, or unjust manner.