Suppose That the Elasticity of Demand for Insulin Is 0

question 40

Multiple Choice

Suppose that the elasticity of demand for insulin is 0.1,the elasticity of demand for oranges is 1.2,and the elasticity of supply for insulin and oranges is 0.4.If the government imposes a 10 percent tax on both insulin and oranges,the decrease in the quantity of oranges is ________ the decrease in the quantity of insulin.

• A) larger than
• B) smaller than
• C) equals to
• D) not comparable to
• E) More information is needed to determine how the decrease in the quantity of oranges compares to the decrease in the quantity of insulin.

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Definitions:

Legal Marriage

A formally recognized union between two individuals in the eyes of the law, conferring certain rights, obligations, and protections.

Kinship System

A network of people who are related by marriage, blood, or adoption.

Extended Family

A family that consists of parents and children as well as other kin, such as uncles and aunts, nieces and nephews, cousins, and grandparents.

Family Of Orientation

The family into which a person is born and raised, as opposed to the family they create through marriage or partnership.