Compared to Producers,consumers Will Lose the Greater Amount of Surplus

question 16

Multiple Choice

Compared to producers,consumers will lose the greater amount of surplus from a tax if

• A) demand is more elastic than supply.
• B) supply and demand are equally elastic.
• C) demand is perfectly elastic.
• D) demand is less elastic than supply.
• E) supply is perfectly inelastic.

---

Definitions:

Price Ceiling

A government-imposed limit on the price charged for a product or service, intended to prevent prices from rising above a certain level.

Housing

Structures and buildings that are used as homes, providing shelter and living spaces for individuals and families.

Supply Curve

A graphical representation showing the relationship between the prices of goods and the quantity that producers are willing to supply at those prices.

Quantity Supplied

The level of goods or services that producers are eager and capable of selling at a determined price.