In a Market Where Supply and Demand Are Both Somewhat

question 72

Multiple Choice

In a market where supply and demand are both somewhat elastic,but supply is more elastic than demand,producers will bear less of the burden of a tax because

• A) consumers have a greater ability to change their behavior in response to the tax than producers do.
• B) producers are more likely to be responsible for paying the tax out of pocket.
• C) both parties have equal ability to change their behavior in response to the tax.
• D) consumers will experience higher prices as a result of the tax.
• E) producers have a greater ability to change their behavior in response to the tax than consumers do.

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Definitions:

Observational Learning

The process of learning behaviors by watching and imitating others, without direct instruction or reinforcement.

Observational Learning

A learning process through watching the actions of others and imitating those actions.

Physical Punishment

The use of physical force with the intention of causing a child to experience pain, but not injury, for purposes of correction or control.

Operant Conditioning

A method of learning that uses rewards and punishments to influence behavior.