Suppose the Demand for Macaroni Is Inelastic,the Supply of Macaroni

question 185

Multiple Choice

Suppose the demand for macaroni is inelastic,the supply of macaroni is elastic,the demand for cigarettes is inelastic,and the supply of cigarettes is elastic.If a tax were levied on the sellers of both of these commodities,we would expect that the burden of

• A)both taxes would fall more heavily on the buyers than on the sellers.
• B)the macaroni tax would fall more heavily on the sellers than on the buyers,and the burden of the cigarette tax would fall more heavily on the buyers than on the sellers.
• C)the macaroni tax would fall more heavily on the buyers than on the sellers,and the burden of the cigarette tax would fall more heavily on the sellers than on the buyers.
• D)both taxes would fall more heavily on the sellers than on the buyers.

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Definitions:

Social Interest

A concept introduced by Alfred Adler, referring to an individual's attitude towards and awareness of being part of a community and the inclination to contribute positively to it.

Collective Unconscious

A concept introduced by Carl Jung that describes a segment of the unconscious mind formed from inherited memories and experiences, shared universally among humans.

Individual Psychology

A psychological framework which emphasizes understanding the uniqueness of each individual and how they strive for success and cope with feelings of inferiority.

Indivisible Whole

A concept referring to something that cannot be divided into smaller parts without losing its essential nature or function.